AUO, SunPower to Set Up Solar Cell Manufacturing Facility in Malaysia

The Board of Directors of AU Optronics Corp. (AUO) 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, the manufacturer of the world's highest efficiency solar cells commercially available, is AUO's latest endeavor in the solar business since the acquisition of over 50 percent the shareholding of M.Setek, the leading Japanese 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 resolution adopted by the Board of Directors of the two parties for the joint investment was in view of SunPower's leading brand position on solar technology in the U.S. market, its 25 years of experience in R&D, intellectual property related to high efficiency solar cells, and AUO's core competence in global manufacturing, management and securing of the material source.

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.

SunPower is a global leader in the manufacturing and development of solar cells with a minimum rated efficiency of 22 percent, the highest efficiency commercially available now. The company possesses the highest market share in the U.S. for residential, commercial & public sector and large-scale utility projects. It is as well a market leader in Germany, Italy and Spain.

AUO

SunPower