Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip contract maker by revenue, through its corporate venturing division has bought a fifth of US-based solar power company Stion.
VentureTech Alliance, a US-based venture affiliate of TSMC, agreed to invest $50m for a 21% stake in Stion. The total raised in Stion’s series D round was $70m, with its venture capital firms, Khosla Ventures, Lightspeed Venture Partners, General Catalyst Partners and Braemar Energy Ventures, returning.
Rick Tsai, president of new businesses at TSMC, said: "With TSMC’s [research and development] capabilities and manufacturing expertise, we believe we can achieve long-term overall leadership in solar [photo-voltaic] solutions."
The Stion deal follows TSMC agreeing in December to buy a fifth of Taiwan-based solar-cell maker Motech Industries for $193m.
In return for a 20% stake, Stion raised $15m in its series B round in mid-2007 from Moser Baer Photo Voltaic, the corporate venturing division of technology company Moser Baer India. Venture capital firms Lightspeed Venture Partners, General Catalyst Partners, Khosla Ventures and Braemar Energy Ventures also participated in the B round. News provider PEHub.com said Stion previously raised $44.6m.