October 1, 2007 – A group of Taiwanese petrochemical manufacturers are setting up shop in the photovoltaic industry, though most of them are choosing the JV route rather than go it alone, notes the Taiwan Economic News.

Taiwan Styrene Monomer Corp. s putting NT$1 billion (about US $30M) into a polycrystalline silicon manufacturing project in mainland China, adding to its PV footprint with existing stakes in solar-cell firms Gintech Energy and Big Sun Energy, which could return as much as $36M this year, the paper notes.

TSMC mainly produces styrene monomer as well as para-diethyl, benzene, toluene, and ethyl benzene, for makers of polystyrene, ABS resins, and synthetic rubber. It’s not the first Taiwan petro firm to take a stab at solar energy (see table), but the paper notes that it could be the first to develop a presence both upstream and downstream in that industry.

Of those other firms, the paper notes that state-run CPC Corp., seen by analysts as the only domestic firm that can compete with multinational solar materials suppliers, has indicated its desire to test the waters, but so far has not revealed specific plans.

Meanwhile, Lee Chang Yung Chemical Industry Corp. and LED maker Epistar Corp. are planning a polycrystalline JV, capitalized at about $121M and $15M in startup funds. And plastics firm USI Corp. is kicking off its own $363M unit, Universal Semiconductor Corp., to make polycrystalline silicon, projecting pilot production sometime in late 2008 or early 2009.

Taiwanese petrochemical manufacturers’ photovoltaic investment plans

Company……..Planned investment……..Strategic alliance……..Investment model………….Advantage
………………….. capital (NT$100M)

CPC…………………..NA……………………NA…………………….NA………………Technology/capital abundance
Lee Chang Yung…100…………………Epistar……………Joint venture…….Supporting process technology
USI…………………….120…………………NA…………………..Joint venture…….Cross-industry cooperation
Taiwan Styrene……10.5……………..Gintech, Big Sun……Capital investment…….Investment returns

Source: Taiwan Economic News