MEMC Electronic Materials Enters 10-Year Supply Contract

July 10, 2008
Company makes $3 billion deal to supply solar wafers to Taiwan-based Tainergy.

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.

Popular Sponsored Recommendations

The Executive Guide to Best Practices for Ecommerce Integration

Oct. 2, 2023
Get ready to elevate your post-checkout experiences and thrive in today's unpredictable market. Learn why integration and automation are crucial to run operations more smoothly...

Digitally Transforming Data and Processes With Product Lifecycle Management

Oct. 29, 2023
Manufacturers face increasing challenges in product development as they strive to consistently deliver improved results. Discover how industry leaders are improving time-to-market...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!