Taipei, Sept. 11, 2008 (CENS)--The Lien Hwa Group and United Microelectronics Corp. (UMC) recently formed a joint venture through their own each subsidiary to put out polycrystalline silicon, a major material for making solar cells.

Industry watchers pointed out that the cooperation reflects the reality that global supply of the material remains short, making the manufacturing a lucrative business.

Silicon-foundry giant UMC invested in the NT$50 million (US$1.6 million at US$1:NT$31) venture through its subsidiary Unimicron Technology Corp. while its counterpart made the investment through BOCLH Industrial Gases Co., a producer of gases for uses in various industries.

Statistics recently released by the Ministry of Economic Affairs (MOEA) show that 12 Taiwanese enterprises have got involved in or are planning to plunge into manufacturing of materials for solar products. The ministry`s Industrial Development Bureau (IDB) estimated the island`s total output of polycrystalline silicon to reach one to two metric tons in 2010 if all the perspective investors start volume productions at that time. Global demand for the silicon is estimated to top 140,000 metric tons in 2010, far outnumbering Taiwan`s supply. The bureau estimated solar-materials production to inject an additional NT$22.5 billion (US$725 million) into Taiwan`s solar revenue in 2011.

Industry watchers pointed out that fat business has lured many Taiwanese solar-module manufacturers to make foray into materials sector. Solar-module maker E-Ton Solar Tech, for instance, has branched out into polycrystalline production in cooperation with M.SETEK of Japan. Polycrystalline maker Green Energy Technology Inc. has entered into alliance with a mainland Chinese manufacturer on production of silicon ingots.

Solar-cell maker Solartech Energy Corp. is planning to diversify into polycrystalline-silicon manufacturing while Neo Solar Power Corp. is seeking location for its polycrystalline-silicon factory.

Even the Formosa Plastics Group (FPG) has entered into productions of gases for solar-product productions.

(by Ken Liu)