The investment will be added to the company's reported joint venture in Jiangxi Province for solar-energy materials with China's Yingli Group and inroads into solar-energy module and system. Industry insiders figured that Hon Hain may further seek takeover of solar-energy silicon wafer plant and thin-film solar-energy plant, thereby forming a complete deployment in the emerging solar-energy sector. Auria Solar is a candidate target for the takeover, although Tsai Chin-yao, Auria chairman, denied any contact with Hon Hai for such a deal.

Hon Hai reportedly will reshuffle and take over the management of E-Ton.

The move follows the acquisition of 20% stake by Taiwan Semiconductor Manufacturing Corp. in Motech Industries, at cost of NT$6.2 billion, in 2009, increasing the number of heavyweight Taiwanese electronic firms with heavy investments in the solar-energy sector to four, with the other two being United Microelectronics Corp. and AU Optronics. The four will vie with Yingli Group, Suntech Solar, another Chinese firm, and Japan's Sharp in vying for the emerging solar-energy pie.

Hon Hai subscribed to 67.33% of the 300 million shares floated by E-Ton in the private placement, at NT$20 per share, representing 59.05% discount from E-Ton's closing price of NT$48.85 yesterday, or 39% discount from its book value of NT$32.79 at the end of the third quarter last year. Hon Hai may also subscribe the remaining shares in the private placement, although it is not confirmed. E-Ton suffered red ink equivalent to its paid-in capital in each of the past two years, due to loss from equity investment in the U.S.