MEMC Electronic Materials Inc., a manufacturer of wafers for the semiconductor and solar industries, today announced the execution of a definitive agreement to supply solar wafers to Tainergy Tech Co. Ltd., a Taiwan-based solar cell manufacturer formed in 2007 as a subsidiary of Kenmec Mechanical Engineering.
Under the terms of the agreement, MEMC will supply solar wafers to Tainergy over a 10-year period, with pre-determined pricing, on a take or pay basis beginning in the third quarter of 2008. Sales of the wafers over the 10-year period would generate between $3 billion and $3.5 billion in revenue for MEMC.
MEMC's CEO Nabeel Gareeb said Tainergy's roots in equipment manufacturing and factory automation systems, combined with a solid management team and geographic position, should allow them to achieve success in the solar market.
"Today's announcement marks the fourth strategic partner for MEMC in the solar arena, and the second in Taiwan, as MEMC continues to expand its customer list in solar applications and increase its geographic diversity," Gareeb said.
Frank Hsieh, chairman of Tainergy, added that a secure supply of high-quality wafers from MEMC will increase the company's ability to achieve the fast growth and market share gains that it strives for, while providing high-quality solar cells to our customers at competitive prices.
"MEMC is an integrated, asset-efficient leader in the industry with the products, scale, innovation and cost which makes MEMC the right partner for Tainergy," Hsieh said.