Taiwan-based solar cell producer, Solartech Energy is investing approximately US$16.2 million in Malaysia-based solar cell producer, TS Solartech Sdn Bhd, a subsidiary of Tek Seng Holdings Bhd. 

Solartech Energy said in a recent TWSE financial filing that it had signed a memorandum of cooperation with TS Solartech that would become a strategic alliance in the production of solar cells. 

The company said the investment would also relate to the expansion of multicrystalline solar cell production with the purchase of production equipment. 

Before the Solartech Energy agreement, TS Solartech had plans to expand solar cell production to 640MW by 2015, which would include 8 manufacturing lines. Currently, TS Solartech is currently operating a single production line, producing 26,000 solar cells per day. 

According to Solartech Energy, the strategic alliance was intended to expand its sales in the Southeast Asia region. 

However, Solartech Energy like other Taiwan-based solar cell producers have had sales impacted by the US anti-dumping case with sales falling from record peaks in the early part of the second quarter. 

Producers such as Neo Solar Power have said that it was considering overseas production to avoid duties. Companies are also looking at expanding sales to Japan, a key market for many producers as Japanese manufacturers such as Sharp continue to outsource wafer, cell and module assembly to meet demand and limit capital expenditure. 

Malaysia had been identified as a potential destination for Taiwan producers due to the establish supply chain, which supports both small local producers as well as the likes of Hanwha Q CELLS and Panasonic.