AUO, SunPower set up solar plant in Malaysia

The Board of Directors of AU Optronics Corp. has approved the resolution of a joint venture to construct and operate a solar cell manufacturing facility in Malaysia with SunPower Corp. The resolution was passed in view of the need to accelerate the setup of a complete solar value chain to meet the rapidly growing market demands.

The strategic alliance with SunPower is AUO's latest endeavor in the solar business since the acquisition of over 50 percent the shareholding of M.Setek, the leading Japan supplier of upstream polysilicon and wafers. The collaboration will establish a new solar business model featuring cost efficiency and leading technology in the development of high efficiency solar cells. Meanwhile, by means of cooperation with SunPower in continuous process improvement, production and management, AUO will be able to produce more innovative products with higher conversion rates to better serve its customers.

The joint investment in Malaysia will be $700 million. AUO and SunPower will each contribute $350 million over several installments, owning 50 percent of the shareholding respectively.

"This joint venture sets a remarkable milestone for AUO's solar business," said K.Y. Lee, chairman of AUO. "SunPower leads the solar industry with the world's highest efficiency technology for solar cells. With the joint venture, we will join our strength to maximize competiveness and long-term benefits. Customers worldwide will profit from the synergy of vertical integration and scale for their solar investments."

"AUO's proven ability to rapidly scale advanced manufacturing technology while driving consistent, aggressive cost effectiveness makes them the ideal partner to ramp up the future fab in Malaysia," said Tom Werner, SunPower's CEO. "AUO's professional strength in global operations, management and smart logistics will indeed add significant value for us."