TSMC Solar, TSMC's 100% owned subsidiary, will cease manufacturing operations at the end of August, as the company believes that its solar business is no longer economically sustainable. TSMC said it would continue to honor all product warranties that have been offered to existing customers, and would also extend employment offers to all employees currently working at TSMC Solar in Taiwan upon the closure of its fab, located at Central Taiwan Science Park in Taichung.

TSMC Solar’s late entry to the market and lack of economies of scale led to a substantial cost disadvantage. After careful consideration, TSMC has come to the conclusion that despite its world-class conversion efficiency for CIGS technology, TSMC Solar will not be viable even with the most aggressive cost reduction plan.TSMC estimates that charges related to closing the solar subsidiary’s fab will impact third quarter 2015 earnings per share by NT $0.07. Remaining solar panel inventory will be installed at TSMC buildings and facilities.