Taiwan-based solar cell maker Gintech Energy on September 17 announced it will amend a supply contract of solar-grade crystalline silicon wafers with MEMC Electronic Materials, with prices to be regularly renegotiated every quarter based on the changes in the spot market, and supply to account for 60-65% of Gintech's quarterly demand.
The price renegotiation may not follow the quarterly schedule in the case of fast fluctuations in the spot market, Gintech said. Gintech's board of directors on September 17 authorized the company chairman to sign the revised contract with MEMC soon.
The revisions will also extend the business relation between the two sides from silicon wafer supply to strategic alliance. Gintech will help MEMC seek a partner in Taiwan for outsourced afer production, and Gintech will reserve up to one-third of its total capacity to make solar cells for MEMC, the company said.
MEMC may invest in or form some kind of strategic partnership with the maker for the outsourced wafer production, Gintech said.
According to industry sources in Taiwan, a potential partner for outsourced wafer production is Eversol Corporation, Gintech's subsidiary with annual ingot capacity of 150MWp (megawatt-peak) and wafer capacity of 200MWp. Currently, China-based Glory Silicon Energy (Zhenjiang) is a major outsourced producer of solar-grade wafers for MEMC, the sources pointed out.
Article translated by Adam Hwang
