Taiwan's biggest solar cell maker, Motech Industries Inc (茂迪), yesterday said it had inked an NT$10 billion (US$305 million) contract with Renewable Energy Corp to secure supplies of silicon wafers for the next five years amid an ongoing shortage of the key material.
"With the contract, Motech will have a sufficient supply of silicon wafers [to cope with its capacity expansion]," Motech said in a filing to the Taiwan Stock Exchange yesterday after the market closed.
The Norwegian Renewable Energy Corp is the world's No.3 supplier of silicon wafers.
The new deal was announced by Motech after the company ended its five-year agreement with the world's biggest silicon wafer supplier, MEMC Electronic Materials Inc, early last month.
In mid-July, Motech signed an agreement with Chinese ReneSola Co (
After ending the deal with MEMC, Motech cut its output target for the year by 45 percent to 110 megawatts from the 200 megawatts it had originally planned. But the adjusted output would still represent an 83 percent increase from the 60 megawatts made last year, the Taiwanese company said.
Motech said it aimed to further boost its annual capacity to 240 megawatts by next year.
Shares of Motech dropped 2.59 percent to NT$715 on the GRETAI Securities Market yesterday.