Solyndra, touted as the next big new technology company in Silicon Valley and the next big employer, announced that it will shut down and layoff 1,100 workers immediately.

Solyndra said it was shutting down as it could no longer compete with Chinese competitors.

Solyndra, got a $535 million U.S. tax payer bailout to create jobs. Tax payers own 73% of the company. According to a DOE spokesman, $527 million has been already spent. The company has raised $1 billion in total. The company had planned to repay the money after doing an IPO, which it said was a remote possibility.

President Obama visited the company to bring attention to a company that was a symbol of great American success.

Solyndra will be the third U.S. solar company to seek bankruptcy protection in the last month. Former Wall Street high flyer Evergreen Solar Inc filed for Chapter 11 two weeks ago, followed four days later by SpectraWatt Inc, a private company that was backed by Intel Corp.