IMG_1324Days after solar cell maker SpectraWatt notified New York authorities that it will shut down its seven-month-old factory and lay off 117 employees, China’s Trina Solar announced Monday that it will invest $800 million in new manufacturing plants over the next three years.

The move by Trina underscores just how difficult it has become for solar startups in the United States to compete against the massive investment being poured into Chinese photovoltaic module makers.

That’s particularly the case for startups making conventional silicon photovoltaic cells such as SpectraWatt, which was spun out of Intel in 2008 with an initial $50 million investment lead by the chip giant’s venture capital arm, Goldman Sachs and other investors.

In 2010, Chinese firms accounted for 72 percent of new photovoltaic manufacturing capacity worldwide, according to a survey by iSuppli, a California research firm. Seven of the top 10 module manufacturers are based in China.

As Chinese solar companies like Suntech Power Holdings and Yingli Green Energy have ramped up manufacturing — supported by generous subsidies from China’s government — they’ve cut prices and grabbed big shares of the U.S. and European markets.