It plans to sell a minority ownership interest in the semiconductor business to the public. SunEdison will use proceeds from the separation to fund initiatives related to the solar business, to repay existing indebtedness and for general corporate purposes.

The newly formed SunEdison Semiconductor will operate as an independent company with a new board of directors.

"Today's announcement represents the next evolution in our strategic plan to better position both our solar and semiconductor businesses for sustainable, long-term success," said Ahmad Chatila, CEO of SunEdison. "This new structure will allow each independent company to pursue its shareholder value generating strategies, focus on key markets and customers, optimize capital structures, and enhance access to growth capital for each company in the years ahead. Given the significant accomplishments of the businesses to date, it is the right time for this transaction which we believe maximizes value to our investors while benefiting our customers and employees."