Taiwan-based Delta Electronics and Neo Solar Power (NSP) held a joint press conference to announce the plans on NSP buying 13-15% of shares of DelSolar, the solar subsidiary of Delta, starting at November 20 to December 14, 2012. Delta currently owns 54% of DelSolar's shares.
According to Yancey Hai, chairman of Delta and Quincy Lin, chairman of NSP, the cooperation will combine the solar cell, module business of NSP and DelSolar with the system business of Delta to form a highly competitive supply chain and become Taiwan's largest solar firm. NSP will further assess the merger of DelSolar. After the merger, Delta will become the biggest shareholder of the new company. Delta promised to support the current management team of NSP and will continue to help NSP to integrate the solar cell, module, and system business with DelSolar. Furthermore, Delta will provide up to NT$1.5 billion (US$51 million) to join the new firm's capital injection plans and strengthen the financial structure.
After the merger, the new firm will have solar cell capacity close to 2GW and become Taiwan's largest and the world's second largest solar cell maker.