Taiwan Semiconductor Manufacturing Company (TSMC) on April 27 announced plans to spin off its solar and solid state lighting businesses as two wholly-owned subsidiaries. The spin-offs are subject to approval by the company's shareholders.

The new companies will be named TSMC Solar and TSMC Solid State Lighting. "The establishment of these two subsidiaries is aimed at motivating entrepreneurship and facilitating business specialization to strengthen overall competitiveness and operational efficiency," TSMC said in a statement.

TSMC Solar and TSMC Solid State Lighting will be founded with initial paid-in capital of NT$12.5 billion (US$434 million) and NT$2.8 billion, respectively, according to TSMC.

TSMC is scheduled to hold its annual shareholders meeting June 9.