SunEdison
| Company type | Public |
|---|---|
| Industry | Renewable energy, Solar energy, Wind power |
| Predecessor | Monsanto Electronic Materials Company (MEMC Electronic Materials) |
| Founded | August 6, 1959 in United States |
| Founder | Monsanto (as MEMC Electronic Materials) |
| Fate | Filed for Chapter 11 bankruptcy in 2016; restructured and became private in 2017 |
| Headquarters | United States , United States |
Area served | Worldwide |
Key people | Ahmad Chatila (CEO from 2009) |
| Products | High-purity polysilicon, monocrystalline silicon ingots, silicon wafers, solar modules, photovoltaic mounting systems, solar energy solutions |
SunEdison, Inc. (previously known as MEMC Electronic Materials) is a renewable energy enterprise headquartered in the United States, focusing on the development, construction, ownership, and operation of solar and wind power facilities. Its range of products encompasses high-purity polysilicon, monocrystalline silicon ingots, silicon wafers, solar modules, photovoltaic mounting systems, and comprehensive solar energy solutions. Initially founded in 1959 under the name Monsanto Electronic Materials Company, it was divested by Monsanto in 1989.
By acquiring the wind power company First Wind in 2014, SunEdison established itself as the foremost renewable energy developer globally. The company completed its transformation into a pure renewable energy firm by selling off its semiconductor division in 2015.
Following rapid growth and an unsuccessful bid to acquire residential solar provider Vivint Solar in 2015, SunEdison experienced a dramatic stock decline and accumulated over $11 billion in debt, culminating in a Chapter 11 bankruptcy filing on April 21, 2016. It restructured and reemerged as a private company in December 2017 with a focus on operational efficiency and financial health.
Foundation
Monsanto Electronic Materials Company (MEMC) was created on August 6, 1959, as Monsanto’s silicon wafer manufacturing branch to support the expanding electronics sector. Production commenced in February 1960 at the St. Peters, Missouri site near Monsanto’s St. Louis headquarters. MEMC was among the pioneering semiconductor wafer producers and introduced key technologies such as the Czochralski method for growing silicon crystals and Chemical Mechanical Polishing (CMP) for wafer surface refinement. By 1966, MEMC had developed reactors for epitaxial wafer fabrication and achieved zero-dislocation crystal growth techniques to produce large-diameter silicon crystals.
Expansion
During the early 1970s, MEMC broadened its international footprint by establishing a facility in Kuala Lumpur, Malaysia, where wafers were sliced and polished from ingots manufactured at St. Peters. The company led advancements in wafer dimensions: it was first to manufacture 125mm wafers in 1979, followed by 150mm wafers in 1981, and collaborated with IBM to produce 200mm wafers by 1984. In 1986, MEMC inaugurated a combined production and R&D center in Utsunomiya, Japan, marking it as the first non-Japanese semiconductor wafer producer with operations within Japan’s semiconductor industry.
Change of ownership
In the mid-1980s, MEMC encountered significant price competition from Japanese manufacturers. Despite revenue growth, losses prompted Monsanto—then concentrating on chemicals, agriculture, and biotechnology—to divest its electronic materials division. In 1989, German chemical firm Hüls AG (a VEBA subsidiary) purchased Monsanto Electronic Materials and merged it with Dynamite Nobel Silicon (DNS), creating MEMC Electronic Materials. DNS’s silicon wafer factories located in Merano and Novara, Italy were incorporated into MEMC’s operations. Hüls invested $50 million to advance research and development alongside manufacturing capabilities. By 1991, MEMC introduced an innovative process utilizing granular polysilicon that improved cost efficiency. In 1995, MEMC acquired Albemarle Corporation’s granular polysilicon plant situated in Pasadena, Texas.
MEMC went public on the New York Stock Exchange in 1995, generating over $400 million to support expansion initiatives and debt reduction; Hüls/VEBA retained controlling interest. The semiconductor industry downturn of the late 1990s severely affected MEMC’s finances, leading to a $316 million loss on revenues of $759 million in 1998. In 2000 VEBA merged with VIAG to form E.ON AG, which aimed to divest non-core businesses including MEMC. Due to liquidity challenges and difficulty finding buyers in 2001, E.ON sold its 72% stake to private equity firm Texas Pacific Group (TPG) for a nominal dollar plus $150 million credit facilities. TPG restructured MEMC’s debt obligations, increased its stake to approximately 90%, and reduced staff by about one-third.
Under CEO Nabeel Gareeb from 2002 until 2008, MEMC returned to profitability and regained market presence. By 2003 earnings turned positive; sales surpassed $1 billion in 2004 positioning MEMC as the third-largest silicon wafer supplier globally. TPG gradually exited its investment through secondary stock offerings by 2007. Gareeb resigned as CEO in October 2008.
Solar market entry
In 2006, MEMC strategically entered the solar wafer sector by securing long-term supply contracts with Suntech Power in China and Gintech Energy in Taiwan. Additional agreements followed, including partnerships with Germany's Conergy in 2007 and Taiwan's Tainergy Tech in 2008. By 2007, MEMC had secured approximately 14% of the solar wafer market share, reflecting notable expansion and increased industry presence. Nabeel Gareeb, the CEO who spearheaded this growth and returned the company to profitability, stepped down in November 2008. Ahmad Chatila was subsequently appointed CEO in February 2009.
In July 2009, MEMC collaborated with Q-Cells to establish a joint venture for the Strasskirchen Solar Park, a 50 MW photovoltaic installation located in Bavaria, Germany. MEMC provided the solar wafers while Q-Cells managed the production of solar cells. Each company invested $100 million, holding equal ownership stakes. After commencing operations in early 2010, the facility was sold to investment firm Nordcapital, illustrating MEMC’s strategic focus on asset monetization and capital return.
Acquisition of SunEdison
MEMC expanded its footprint in November 2009 by acquiring SunEdison LLC, the largest solar energy services provider in North America. Founded by entrepreneurs Jigar Shah and Claire Broido Johnson, SunEdison specialized in the development, financing, construction, and operation of large-scale photovoltaic plants catering to commercial entities such as retailers, government bodies, and utility companies. The firm was a pioneer of the solar-as-a-service concept and introduced solar power purchase agreements (PPAs) that allowed customers to finance installations with no upfront costs. This acquisition broadened MEMC’s business scope to include solar project development and established it as a leading provider of solar energy services across North America. CEO Ahmad Chatila emphasized MEMC’s strategic evolution to engage directly in solar power plant development alongside its traditional silicon wafer production. The $200 million transaction was structured with 70% cash, 30% MEMC stock, along with retention incentives and assumption of net debt.
Post-acquisition, MEMC concentrated on advancing technologies for producing affordable, high-performance solar panels. In mid-2010, it acquired Solaicx based in California, gaining access to proprietary continuous crystal growth technology for manufacturing low-cost monocrystalline silicon ingots utilized in high-efficiency solar cells.
In February 2011, MEMC entered a 50/50 joint venture with Samsung Fine Chemicals to construct a polysilicon manufacturing facility in Ulsan, South Korea, initially aiming for an annual capacity of 10,000 metric tons. By late 2014, this joint venture—85% owned by SunEdison-affiliated entities and 15% by Samsung—expanded its output capacity to 13,500 metric tons per year. The plant introduced the industry's first high-pressure fluidized bed reactor (HP-FBR) process for polysilicon production, significantly lowering costs within the solar energy sector.
Further expanding its solar portfolio in 2011, MEMC acquired Axio Power, a developer specializing in utility-scale photovoltaic projects totaling over 500 MW across Canada and the western United States. Additionally, it formed a joint venture with Korea’s Jusung Engineering to combine Solaicx wafers with high-efficiency cell manufacturing equipment aimed at producing cost-effective solar cells. MEMC also purchased Fotowatio Renewable Ventures Inc., adding approximately 1.4 GW of U.S.-based solar projects to its holdings.
Facing a downturn in semiconductor demand alongside challenges within the photovoltaic supply chain, MEMC initiated a restructuring program in December 2011 that involved cutting around 1,300 positions—equivalent to 18% of its workforce—reducing production capacity while enhancing efficiency across polysilicon and wafer manufacturing operations.
In 2012, MEMC introduced its Silvantis series of multi-crystalline solar modules rated at 290 watts with UL certification for 1,000 volts. These modules delivered improved energy output and system cost savings by enabling more efficient wiring configurations for solar installations.
Corporate Renaming and Acquisitions from 2013 to 2015
On May 30, 2013, MEMC Electronic Materials underwent a rebranding, adopting the name SunEdison, Inc. and changing its stock symbol from "WFR" to "SUNE" to reflect a strategic shift toward solar energy.
In May 2014, SunEdison separated its electronics wafer segment into a new entity called SunEdison Semiconductor, Ltd., which launched an initial public offering on NASDAQ under the ticker "SEMI." SunEdison retained controlling interest in this spinoff. The IPO generated $94 million aimed at supporting expansion efforts.
July 2014 marked the establishment of TerraForm Power, Inc., a yieldco subsidiary dedicated to power generation assets, with SunEdison as the principal shareholder. TerraForm Power went public under the ticker "TERP," raising approximately $500 million. In 2015, SunEdison introduced a second yieldco named TerraForm Global, focusing on renewable energy projects in emerging economies such as Brazil, China, and India; it trades under the symbol "GLBL."
In October 2014, SunEdison launched innovative "zero white space" solar panels designed to optimize surface area utilization and implemented high-pressure fluidized bed reactor (HP-FBR) technology for manufacturing high-purity polysilicon with significantly lower energy consumption and cost.
A significant acquisition occurred in November 2014 when SunEdison and TerraForm Power jointly acquired First Wind for $2.4 billion. This deal substantially increased their wind power capacity and established SunEdison as the largest renewable energy developer worldwide.
In 2015, MIT Technology Review ranked SunEdison sixth overall and as the leading energy company in its "50 Smartest Companies," recognizing its rapid growth in renewable sectors and commitment to electrification in developing nations.
By June 2015, SunEdison had completed its exit from the semiconductor market, fully transitioning into a renewable energy-focused enterprise. The semiconductor division was sold to GlobalWafers Co., Ltd in December 2016 and reverted to operating under the MEMC LLC name.
Bankruptcy
Following rapid expansion and an unsuccessful 2015 bid to acquire residential rooftop solar provider Vivint Solar, SunEdison's stock value plummeted amid over $11 billion in debt, culminating in bankruptcy proceedings initiated in April 2016. The company filed for Chapter 11 protection on April 21, 2016, securing $300 million in debtor-in-possession financing from first- and second-lien creditors to sustain operations and payroll throughout restructuring. This financing arrangement received court approval.
SunEdison also requested an independent examiner to review recent financial dealings with a budget of $1 million and a completion timeframe of 60 days—a notably expedited and cost-efficient audit compared to those typical in large bankruptcies.
At its peak in 2015, SunEdison's market capitalization approached $10 billion with share prices exceeding $33.44; however, by the time of bankruptcy filing, shares had dropped to just 34 cents. The company’s business strategy heavily depended on financial engineering and low-cost debt to acquire renewable energy assets worldwide. Between 2013 and 2016, it invested $18 billion in acquisitions while raising $24 billion via debt and equity offerings.
In March 2016, the U.S. Department of Justice initiated an inquiry into SunEdison's financial practices. An internal board investigation found management had been "overly optimistic" but did not uncover any material misrepresentations or fraudulent activity.
SunEdison successfully emerged from bankruptcy on December 29, 2017, following court approval of its reorganization plan in July of that year. During restructuring, Brookfield Asset Management acquired a majority stake (51%) in Terraform Power by October 2017 and completed full ownership of Terraform Global by December 2017. Brookfield finalized full control of Terraform Power in July 2020.
SunEdison companies
- SunEdison, Inc.
- The Solar materials division produces granular polysilicon, silicon-crystal ingots, and silicon wafers utilized in both the solar and semiconductor sectors. Manufacturing takes place in Pasadena, Texas, as well as through a joint partnership with Samsung located in Ulsan, Korea.
- The Solar power division is responsible for the development, financing, construction, and operation of large-scale solar and wind energy facilities serving commercial, governmental, and utility customers. Additionally, it provides complete solar system solutions to residential clients via a broad dealer network.