|Traded as||NYSE: SUNE|
|Industry||Solar energy, silicon wafers|
|Headquarters||St. Peters, Missouri
President & CEO
|Products||Polysilicon, Semiconductor Wafers, Solar Wafers, Photovoltaic Plants, Solar Modules, Solar Energy|
|Revenue||US$2 billion (2013)|
|(US$314 million) (2013)|
Number of employees
SunEdison is a global solar energy company headquartered in the U.S. In addition to developing, building, owning, and operating solar power plants, it also manufactures high purity silicon, monocrystalline silicon ingots, silicon wafers, solar modules, solar energy systems, and solar module racking systems. Originally a silicon-wafer manufacturer established in 1959 as the Monsanto Electronic Materials Company, a former business unit of Monsanto Company, SunEdison is based in St. Peters, Missouri, and the company's solar-energy headquarters is located in Belmont, California with offices throughout the world. Monsanto sold the company in 1989. Prior to May 30, 2013, the company was known as MEMC Electronic Materials; the name change to SunEdison reflects the company's focus on solar energy. The company also continues to manufacture silicon wafers for the semiconductor industry through its subsidiary SunEdison Semiconductor.
Established in the early stages of the semiconductor electronics industry in 1959, MEMC was for the next half century a major and pioneering manufacturer of silicon wafers, the most basic element of semiconductor-chip manufacturing. The company entered the solar market in a big way beginning in 2006, with longterm contracts to manufacture and sell solar wafers to several large Asian solar-energy companies. Contracts with other solar-energy companies followed, as did joint-venture projects on solar power plants. With the acquisition of the large, successful, and pioneering solar-energy systems company SunEdison LLC in late 2009 and the smaller solar-power companies Axio and Fotowatio in 2011, MEMC focused increasingly on the burgeoning solar-energy industry to offset the cyclical downturns in the semiconductor market. The company now develops, finances, and maintains solar power systems and plants for a widespread commercial, public-sector, and power-plant customer base, and its name change in 2013 to SunEdison, Inc. reflects its main focus. It is one of the leading solar-power companies worldwide, and with its acquisition of wind-energy company First Wind in 2014, SunEdison is the leading renewable energy development company in the world.
The establishment of Monsanto Electronic Materials Company (MEMC), a silicon wafer–manufacturing division to serve the emerging electronics industry, was announced on August 6, 1959, as an arm of the U.S.-based multinational corporation Monsanto. In February 1960 MEMC started production of 19mm silicon ingots at its location in St. Peters, Missouri, 30 miles west of Monsanto's headquarters in St. Louis. As one of the first companies to produce semiconductor wafers, MEMC was a pioneer in the field, and some of its innovations became industry standards into the 21st century. MEMC used the Czochralski process (CZ process) of silicon crystal production, and developed the Chemical Mechanical Polishing (CMP) process of wafer finishing. In 1966 MEMC installed its first reactors for the production of epitaxial wafers, and developed zero-dislocation crystal growing, which made large-diameter silicon crystals possible.
In the early 1970s, MEMC opened a production plant in Kuala Lumpur, Malaysia, and sent its St. Peters–produced 2.25-inch ingots there for slicing and polishing. In 1979, MEMC became the first company to manufacture 125mm (5-inch) wafers; in 1981 the first to produce 150mm (6-inch) wafers; and, in partnership with IBM, in 1984 the first to produce 200mm (8-inch) wafers. In 1986 MEMC opened its production and R&D facility in Utsunomiya, Japan, to serve the Japanese semiconductor market, becoming the first non-Japanese wafer maker with manufacturing and research facilities in Japan.
Change of ownership
MEMC experienced heavy price-pressure from Japanese competition during the mid 1980s. Despite its success and increasing revenues, MEMC had to account for losses for a few years, leading to the decision of Monsanto, which was refocusing on chemicals, agriculture, and biotechnology products, to sell the electronic materials division. In 1989 the German company Hüls AG, the chemicals arm of the German conglomerate VEBA, acquired Monsanto Electronic Materials and combined it with Hüls' previous acquisition Dynamite Nobel Silicon (DNS) to form MEMC Electronic Materials. DNS already operated silicon wafer plants in Merano and Novara, Italy and integrated them within the new MEMC Electronic Materials. Hüls supported the new subsidiary with $50 million, for research and development and for manufacturing expansion. In 1991 MEMC developed the first process using granular polysilicon, which provided cost and productivity advantages over "chunk" polysilicon. Four years later MEMC acquired Albemarle Corporation's granular polysilicon production facility in Pasadena, Texas, which had been producing granular polysilicon since 1987.
MEMC's stock began trading on the New York Stock Exchange with an initial public offering in 1995. The IPO raised over $400 million, which went to finance an aggressive growth plan and repay some of the debt to its parent company, and Hüls/VEBA retained a majority interest in the company.
The cyclical downturn in the semiconductor business in the late 1990s hit MEMC hard. In 1998 the company reported a loss of $316 million on revenues of $759 million. In June 2000 VEBA AG, still holding 72% of MEMC, was merged with VIAG to form the new E.ON AG. E.ON wanted to focus on its core business of electric utilities, and assigned Merrill Lynch to sell MEMC. Merrill was unable to find a buyer until MEMC announced that it was on the verge of illiquidity in the middle of 2001. Finally in October 2001 E.ON was able to agree on a deal with the private equity company Texas Pacific Group (TPG), which purchased E.ON's stake in MEMC for a symbolic dollar and offered MEMC $150 million in credit lines. TPG restructured MEMC's debt, increased its stake in the company to 90%, and cut one third of its workforce.
MEMC returned to profitability following the appointment of Nabeel Gareeb, who was CEO of MEMC from April 2002 to November 2008. MEMC's market share rose again and by 2003 it reported positive earning figures. MEMC's sales topped $1 billion in 2004, and it was number three in market share. Through a secondary offering, TPG reduced its share of MEMC in 2005 to 34%, and by the end of 2007, to zero.
Solar market entry
In 2006 MEMC announced its large-scale entry into the burgeoning solar wafer market, via longterm agreements to supply China-based Suntech Power and Taiwan-based Gintech Energy with solar-grade silicon wafers. Similar contracts followed with Germany-based Conergy in 2007, and Taiwan-based Tainergy Tech in 2008. The company cultivated short-term solar wafer customers as well. By 2007, MEMC held approximately 14% of the solar wafer market. Having returned MEMC to a foundation of profitability and having helped it enter the solar market, CEO Nabeel Gareeb resigned in November 2008. Ahmad Chatila was appointed President and CEO in February 2009.
In July 2009 MEMC and Q-Cells, which specialized in construction and operation of photovoltaic plants, formed a joint venture to build Strasskirchen Solar Park, a 50 MW photovoltaic plant in Bavaria, Germany, with MEMC supplying the solar wafers and Q-Cells converting them into solar cells. Both partners invested $100 million each, in return for a 50%-each ownership of the project. As planned, the plant was sold to an investment firm, Nordcapital, after operations started at the beginning of 2010.
Acquisition of SunEdison
In November 2009 MEMC acquired the privately owned company SunEdison LLC, North America's largest solar energy services provider. Founded by Jigar Shah, SunEdison had been developing, financing, building, operating, and monitoring large-scale photovoltaic plants for commercial customers, including many national retail outlets, government agencies, and utilities, since 2003. The company had pioneered solar-as-a-service, and the solar power purchase agreement (PPA) for no-money-down customer financing. With the acquisition of SunEdison, MEMC became a developer of solar power projects and North America's largest solar energy services provider. CEO Ahmad Chatila announced that "MEMC will now participate in the actual development of solar power plants and commercialization of clean energy, in addition to supplying the solar and semiconductor industries with our traditional silicon wafer products." SunEdison was purchased for $200 million, 70% in cash and 30% in MEMC stock, plus retention payments, transaction expenses, and the assumption of net debt.
In February 2011 Samsung Fine Chemicals and MEMC announced a 50/50 joint venture to build a polysilicon production plant in Ulsan, South Korea. The plant was to have an initial capacity of 10,000 metric tons per annum. As of late 2014 the joint venture, called SMP, is 85% owned by SunEdison (50% by SunEdison, Inc. and 35% by SunEdison Semiconductor) and 15% by Samsung, and the plant has a capacity of 13,500 metric tons per annum. By October 2014, the plant began producing the world’s first high-pressure fluidized bed reactor (HP-FBR) polysilicon, enabling sizeable reductions in the cost of solar energy.
In June 2011, MEMC's SunEdison subsidiary acquired another North American solar-power project developer, Axio Power. Axio Power, founded in 2007, developed, financed, and constructed large-scale solar projects, and had more than 500 MW of utility-scale photovoltaic power projects in Canada and the western U.S. In September 2011, MEMC and SunEdison acquired Fotowatio Renewable Ventures Inc., the U.S. unit of Fotowatio Renewable Ventures, a developer, operator and owner of solar power plants. The FRV purchase added up to 1.4 GW of solar projects in the U.S. to SunEdison/MEMC's portfolio.
As it acquired solar power companies, MEMC also began intensifying its focus on developing and acquiring advanced technologies used in the production of low-cost, high-performance solar panels. MEMC acquired the California-based solar tech company Solaicx in mid 2010; the acquisition included Solaicx's high-volume proprietary "continuous crystal growth" manufacturing technology, which produces low-cost monocrystalline silicon ingots for high-efficiency solar cells. In July 2011, it established a joint venture with Korea-based Jusung Engineering, to combine MEMC's proprietary Solaicx CCZ monocrystalline wafers with Jusung's high-efficiency cell manufacturing equipment to provide low-cost, high-efficiency solar cells. In 2012 MEMC developed its Silvantis line of multi-crystalline 290-watt solar modules, which with 1,000-volt UL certification created considerable overall energy-production and systems savings on solar projects due to the ability to be more efficiently wired. In 2014 it announced the development of "zero white space" solar modules, which eliminated wasted space on the solar module surface, and also "high-pressure fluidized bed reactor" (HP-FBR) technology, to produce high purity polysilicon up to 10 times more efficiently and with 90% less energy used than non-FBR technologies.
In December 2011 MEMC undertook restructuring measures in reaction to a cyclical downturn in its semiconductor business and a slump in the whole supply chain of photovoltaic modules. The company announced a headcount reduction of 1,300 employees (18% of the workforce), plus capacity reduction and productivity increase for polysilicon and wafers.
On May 30, 2013, MEMC Electronic Materials changed its name to SunEdison, Inc., and also changed its stock-market ticker from "WFR" to "SUNE", reflecting the company's focus on solar energy. President and CEO Ahmad Chatila announced, "We strongly believe the SunEdison name provides us with broader marketplace appeal and scalability .... We are committed to growing both the semiconductor and solar power businesses, and look forward to building on our strong legacies, now under the SunEdison name."
In May 2014, SunEdison formally separated its electronics-wafer business from its solar-wafer and solar-energy business. SunEdison Semiconductor, Ltd. spun off in an IPO on the NASDAQ under the ticker "SEMI", with SunEdison, Inc. maintaining a majority stake as the largest shareholder. The IPO generated $94 million, used to fund the company's growth.
In July 2014, SunEdison created a yieldco subsidiary, called TerraForm Power, Inc., with SunEdison, Inc. maintaining a majority stake as the largest shareholder. TerraForm began publically trading in an IPO under the ticker "TERP". This IPO of the power-generation subsidiary spin-off raised roughly $500 million.
In November 2014, with its subsidiary TerraForm Power, SunEdison purchased First Wind, one of the largest wind power developers in the United States, for $2.4 billion. The acquisition added wind energy to SunEdison's capacity, and made it the leading renewable energy development company in the world.
- SunEdison Semiconductor. SunEdison's subsidiary SunEdison Semiconductor manufactures silicon wafers for the electronics industry. Products include primarily 200mm and 300mm wafers. The company has plants in Utsunomiya, Japan; Chonan, South Korea; Hsinchu, Taiwan; and Kuala Lumpur and Ipoh, Malaysia. In the U.S., the company produces silicon-on-insulator (SOI) wafers in its St. Peters, Missouri plant. SunEdison Semiconductor produces polished and epitaxial wafers, high-resistivity wafers, and SOI wafers. The main competition to SunEdison Semiconductor comes from SUMCO, Shin-Etsu Chemical, Siltronic, and LG Siltron. SunEdison Semiconductor's market share is roughly 12%.
- SunEdison, Inc.
- SunEdison's solar materials group produces granular polysilicon, silicon-crystal ingots, silicon wafers and solar modules. It produces granular polysilicon in purities usable in the solar and semiconductor industries. The granular polysilicon is produced in Pasadena, Texas, and, through a joint venture with Samsung and SunEdison Semiconductor, in Ulsan, Korea. The granular silicon is used for SunEdison's own silicon-crystal manufacturing, and for sales to third-party solar and semiconductor crystal-manufacturing companies. The division also has a plant in Portland, Oregon acquired from Solaicx in 2010, which produces silicon-crystal ingots using the "continuous crystal growth" technology, enabling the production of low-cost wafers for high-efficiency solar cells. The ingots are sliced into wafers in Malaysia, and solar modules are assembled in Malaysia, Mexico, Taiwan, and China. SunEdison and its subsidiaries and joint-venture partners also manufacture the solar cells and photovoltaic modules for solar-power systems.
- SunEdison's solar power group plans, designs, develops, finances, underwrites, builds, installs, operates, monitors, and maintains large-scale solar energy and wind energy systems and plants for commercial customers, including numerous national retail outlets, shopping centers, businesses and corporations; government agencies and other public-sector customers; and utilities and other power companies. Through an extensive dealer network, it also provides complete solar systems and services for residential homeowners. Through its financing services and partners, SunEdison offers commercial and residential customers the opportunity to install a solar system for no upfront costs, with predictable cost-effective energy rates over the life of the system contract. The company also continues its longstanding research and development to create innovations, cost reductions, and performance enhancements in solar-energy systems technology. SunEdison produces energy via its numerous power plants, and also manages numerous solar power plants worldwide.
- TerraForm Power. SunEdison's subsidiary TerraForm Power is a global renewable energy project development company. It owns and operates solar and wind generation assets serving utility, commercial, and residential customers. It owns and operates over 200 solar power projects. Its scope extends to other clean power generation such as natural gas, geothermal, hydro-electricity, and hybrid power generation.
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