MEMC inks new $8B solar wafer pact, amends another

October 25, 2007 – US-based wafer supplier MEMC Electronic Materials says it has signed a 10-year, $7-$8B deal to supply solar grade silicon wafers to Germany’s Conergy, billed as the worlds’ largest installer of photovoltaic systems.

Terms of the deal include pre-determined pricing on a take-or-pay basis starting in 3Q08, an undisclosed capacity reservation deposit to MEMC, and MEMC will get 5% of the increase in value of Conergy’s solar module/cell subsidiary.

Meanwhile, MEMC says it has amended its 10-year, $7-$9B agreement with Taiwan’s Gintech Energy Corp. to supply additional solar-grade wafers, boosting MEMC’s projected total revenue from the deal by an additional $700-$800M to $3-$4B. Gintech also will advance additional funds as a capacity reservation deposit.

The original Gintech deal included funds to help MEMC expand its manufacturing capacity, and the right to buy a 10% interest in the firm as well as a 1.7 hectare parcel of land in the Hsinchu Science Park.


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