Taiwan solar cell manufacturer Motech to halt production at a Tainan fab temporarily

Approximately 160 jobs will be affected under the company's new plan

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The photo shows a Motech's factory in Tainan. (Screenshot of Google Map image)

The photo shows a Motech's factory in Tainan. (Screenshot of Google Map image)

TAIPEI (Taiwan News) - Taiwan-based global solar cell manufacturer Motech has reportedly planned to halt production at a solar wafer factory in Southern Taiwan Science Park temporarily, with more than a hundred workers to be affected.

Media reported that the company conducted two rounds of meetings with workers at the solar wafer factory over the weekend to explain the situation.

Approximately 160 workers will be arranged to work for Motech's other factories in the same city which build solar cells, and those who do not accept transfers can opt to terminate the employment contract with the company, which will in return provide a severance package in accordance with the Labor Standards Act.

The company told media that falling prices are impacting the supply chain and have eaten away profit as the solar wafers are traded below cost, partially under the influence of China's new solar policies that are believed to have affected the prices. The factory's production capacity was running low at 20 to 30 percent. To reduce the loss, the company is planning to halt the production of the fab temporarily.

Motech said the fate of the factory will be decided later after a thorough evaluation, and will continue to focus on production of solar cells and PV module system.

The company announced a plan to cease operation at its wafer dicing factory in October 2017, with approximately 200 workers being affected.