Honda has announced it will close its thin-film manufacturing subsidiary Honda Soltec spring 2014.
In a statement Honda said the falling cost of silicon was one of many factors that meant it was unable to remain competitive.
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The unit had developed its own copper, indium, gallium and selenium (CIGS) module and manufactured from a 30MW production hub.
It will continue taking orders until February 2014 and will provide after sales support via a separate Honda affiliate once Soltec has been dissolved.
Honda lists the firm's capital investment at ¥4 billion (US$40.5 million). Soltec was established in 2006.