Stion Gets $25 Million to Expand Solar Panel Manufacturing

Stion Corp., a closely held manufacturer of thin-film solar panels, received about $25 million to expand production.

Khosla Ventures led the financing, which included “most but not all” of the company’s existing investors, Frank Yang, Stion’s senior director of business development, said today in a phone interview.

“We may end up at the end of this round having all of them participate,” Yang said.

Stion disclosed the investment in a filing Dec. 12 that listed $55 million for the “total offering amount.” Its other investors include Taiwan Semiconductor Manufacturing Co., LightSpeed Venture Partners, Braemar Energy Ventures and General Catalyst Partners.

Stion will use the funding to expand production capacity to about 140 megawatts a year from 100 megawatts a year at its factory in Hattiesburg, Mississippi, Yang said. The company, based in San Jose, California, said last year that a six-year expansion project at the site may require as much as $500 million.

Avaco Co., the South Korean provider of semiconductor manufacturing equipment, led a $130 million investment in Stion last year and is helping the company improve its technology and develop new processes for Asian and European markets.

To contact the reporter on this story: Andrew Herndon in San Francisco at aherndon2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net