Running a company
--Tech and business smarts needed
Although solar energy is called an "emerging industry," 17 years ago Taiwan already had vendors like Sinonar involved in the area. Subsequently, environmentally conscious companies including Photonic Energy Semiconductor, EverBright, and E-Ton Solar Tech, which was strongly supported by ITRI, entered this clean-energy industry. Sinonar has focused from the beginning on developing non-crystalline-silicon-film-based solar panels, and thus was less affected by shortages of silicon, even managing to become the world's largest vendor in 1994. However, Sinonar entered the market too early. The path from development and production to real-world applications was too lengthy, making business difficult.
Entering the market early was less desirable than entering just in time. Although Motech was not Taiwan's first solar energy company, it entered the market at a propitious time, and had a solid grasp on future directions in the industry. It was thus able to spearhead renewed development in the sector.
However, even if its timing is right, a company that doesn't have the requisite supporting technical capabilities is still vulnerable to being overwhelmed in the subsequent crush of new rivals. "Though Motech had just a few years of experience with solar cells, Dr. Tsuo had been at the cutting edge of the field for 25 years!" says R&D manager Tang Ching-yao, who came to Motech in 1999 when it built its solar cell factory, in response to skepticism about Motech's technological capabilities.
When 25 years of accumulated resources finally reached fruition, the effect was electrifying. After graduating with a degree in physics from Fu Jen Catholic University in 1972, Tsuo went to Yeshiva University in New York to continue his physics studies. After obtaining his PhD, he worked at NASA performing research on infrared sensing technology for satellites. He subsequently went to the US Department of Energy (DOE). This background gave him a valuable head start in leading Motech Solar. Tsuo and the entire team spent more than one year studying how to convert sunlight into the maximum amount of electrical energy, while also ensuring the stability of the power generation system. This was necessary because "if just one palm-sized cell in a solar panel made up of hundreds of cells is blocked, the entire panel won't produce any electricity," notes Tsuo.
Expanding your business is one thing, but product quality is something else entirely," explains Tsuo, explaining the key to Motech's success. The entire solar energy industry begins upstream, with chip vendors turning the raw silicon into silicon ingots. These are cut into silicon chips, which cell manufacturers turn into cells. Module vendors turn the cells into panels, which finally go to system vendors for installation. A seven-foot-square solar panel consists of over 100 cells soldered together, and these cells are Motech's main product.
Motech's initial strategy was to take on the technologically challenging area of designing solar energy cell chips and performing system integration, while outsourcing the work of solar module assembly, with its lower profit margins, to local vendors. Over a short six years, the solar energy cells developed by Motech performed well in the World Solar Challenge solar-powered boat competition and the American Solar Challenge solar-powered auto race. While the top seven finishers in the latter competition used the type of solar cells normally used for aerospace applications, which are made from rare, costly materials, the cells supplied by Motech were those found in land-based installations. But the race team they worked with ranked second among teams using this type of cell, making it evident that Motech's solar cells are technologically on a par with other products internationally.
Because no clear direction for energy policy has been set in Taiwan, the domestic demand for solar energy cells is limited. Motech has thus been forced to turn to the international market. Motech has entered strategic alliances with raw materials and module vendors such as Norway's Scanwafer and Germany's polycrystalline silicon wafer giant SolarWorld AG. Using cross-investment and joint investments, Motech has turned these foreign companies into its European bases, while Motech itself plays the role of its partners' operational centers in Asia. Through its partnerships, Motech has thus been able to enter international markets.
Once Motech had established a mutually beneficial approach to partnerships, it successfully won numerous solar energy generation system contracts in Germany and Japan. Motech used each contract it won as a springboard to another in the international market, rapidly accumulating extensive experience in solar photovoltaic system design. It then assisted in the building of solar power generation systems in Taiwan.
For example, in 2003 Motech helped the Fubon Group construct an environment-friendly building near Taipei's Jen-ai traffic circle, including the highest-capacity solar panel in all of Taiwan. At the same time, Motech has supplied solar panel-based power supply systems for use in remote areas such as mountainous regions, offering a means of providing emergency lighting and communications in the event of landslides or road collapses. In the Central Mountain Range, where peaks top 3000 meters, some mountain shelters include Motech's solar power modules for mountaineers to use in emergency situations. In this way, Motech is demonstrating the practical utility of its products to stimulate market demand.
Having endured a painful period of transition, Motech's reputation has grown immensely. However, the hectic growth that has followed the establishment of the business and development of markets through global alliances has forced Tsuo to confront changes in the company's strategic direction and deployment of its resources. For the sake of long-term business, it is essential to establish a strong organizational infrastructure and attract international talent.
"Helping Dr. Tsuo establish a systematic workflow is currently my main job responsibility," asserts chief operating officer Paul Cheng, who just returned to live in Taiwan in March 2006 after working in the US for 35 years. He chose to come to Motech in his quest for new beginnings.
Ten years ago, most people believed that solar power was merely fodder for laboratory experiments. Today, the use of solar power is visible in solar-powered model cars, on bus shelters and rooftops, and even solar-powered boats.