Solar Cells Info

St. Louis Business Journal
23 october 2006

source:
http://stlouis.bizjournals.com/stlouis/stories/2006/10/23/daily39.html

MEMC Electronic Materials Inc. said Thursday that it has an agreement with Gintech Energy Corp. to supply the Taiwan-based firm with solar grade silicon wafers.

The agreement calls for MEMC to supply solar wafers to Gintech, a solar cell manufacturer, over a 10-year period, with pre-determined pricing, on a take or pay basis beginning in the second half of 2007, according to a release.

MEMC said it would see $2.5 billion to $3 billion in revenue from sales of the wafers over the 10-year period.

As part of the agreement, Gintech will advance funds to MEMC in the form of an interest-free loan or security deposit to be used for expansion of MEMC’s manufacturing capacity, the release said. MEMC also will be eligible to purchase a 10 percent interest in Gintech, as well as acquire the rights to a parcel of land of about 1.7 hectares, or about 4.2 acres, located within the Hsinchu Science Park.

MEMC’s chief executive, Nabeel Gareeb, said in a statement, “Located in Taiwan, Gintech is well-positioned, both strategically and geographically, to capitalize on the high-growth opportunity available in the solar market and we are excited to be working with them.” He added that with the addition of the Gintech business, MEMC now has agreements to supply solar wafers worth between $7 billion and $9 billion in revenue over the next 10 years.

MEMC signed a long-term deal with Suntech Power Holdings in July that’s worth up to $6 billion, and a multiyear agreement with Motech Industries in April that’s worth at least $1.6 billion over the life of the deal.

Gintech’s President and CEO Scott Kuo said in a statement that the agreement with MEMC represents how Taiwan’s manufacturing excellence in semiconductors can also be translated into the growing solar industry.

St. Peters, Mo.-based MEMC Electronic Materials Inc. (NYSE: WFR) manufactures wafers for the semiconductor industry.