Wafer Works Branches Into Solar Power Plant, Buys Into Cleantech America

Taipei, Marcg 19, 2008 (CENS)--Wafer Works Corp., a leading Taiwanese manufacturer of silicon wafers, recently acquired a stake of power plant operator Cleantech America of the United States, which is planning to build a massive solar-power plant.

The investment will give the Taiwanese silicon-wafer maker a chance to tap the market of solar wafers used by power plants, which is put at around US$10 billion a year worldwide.

Industry watchers pointed out that solar-cell makers are aggressively expanding into upstream segment and downstream segment to increase business opportunities. In addition to Wafer Works, Motech Industries Inc. and Gintech Energy Corp. are two typical cases of the development trend.

Wafer Works is first Taiwanese solar-energy manufacturer to enter power-plant market by buying into a plant operator. The latest investment came after Wafer Works' investment in Solargiga Energy, a mainland Chinese solar-wafer maker.

Solargiga estimates its output to increase to 300 megawatts or so by the end of this year, around 50% more than originally planned 200 megawatts. Also, Solargiga plans to branch into solar-material segment.

Wafer Works executives pointed out that the company's investment in Cleantech America is part of their company's plan to enlarge business scope. They said solar-wafer demands of power plants are quite promising, posing their company a lucrative business opportunity.

Strong market sent the company's revenue for last month up to NT$484 million (US$15 million at US$1:NT$32), another new high for 24 consecutive months and up 18.5% year on year.

The California-headquartered Cleantech America announced last year that it will build the world's largest solar-power plant, which is projected to have maximum output of 80 megawatts of electrical power for 12 cities across the United States as soon as it is completed in 2011. The power-plant operator is planning another solar-power plant, which is designed to have output of five megawatts when it is completed next year.

Cleantech America's solar-power plants are estimated to help reduce at least 100 million pounds of CO2 emission a year.