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Taiwan Semiconductor Allots $50M For Solar Investments; Considers Purchasing Solar & LED Companies

August 10, 2009 by Jeff Shepard

The Taiwan Semiconductor Manufacturing Co. (TSMC) has recently been announcing its intention to get into the solar business. The company’s Board of Directors announced that it has set aside $50 million for "possible use in solar" investments. Prior to this action, TSMC hinted that it might start its own solar business. The company also revealed that it is considering purchasing companies in the solar and light-emitting diode industries.

"We can start out maybe first purchasing a small company, but use that as a nucleus for growth," said Morris Chang, TSMC’s Chairman and Chief Executive Officer. "I think we have gotten into a situation where everybody seems to be really comfortable and not particularly hungry anymore."

TSMC, whose customers include Intel Corp. and Texas Instruments Inc., is described as the world’s largest contract chipmaker. The company’s most recent financial report (July 31st) reported a third consecutive quarterly decline in profits. The company forecast third- quarter sales that it says exceed analyst estimates, citing a recovery in demand for computers and electronics. National Semiconductor and Applied Materials, two of TSMC’s largest competitors in the chip industry, have already entered the solar arena with commercial products.