AE of the USA to Open Polycrystalline Silicon Factory in Taiwan

Taipei, May 19, 2009 (CENS)--AE Polycrystalline Corp. (AE) of the United States, one-quarter owned by Taiwanese solar-cell maker Motech Industries Inc., will invest in the third phase of its expansion in Taiwan, according to AE's president, Y.P. Tso.

Tso disclosed the plan at a solar-energy forum recently held in Taipei. He said that AE would build a multibillion NT dollar factory on the island in one to two years to put out polycrystalline silicon wafers for photovoltaic applications before migrating to wafers for semiconductor chips.

He added the first and second phases would be constructed in the United States, with the first phase designed to put out 1,800 metric tons of the photovoltaic material a year and enter into volume production in the fourth quarter this year. The company is planning second-phase construction, which is triple the size of the first-phase and set to begin volume production in 2011 or so.

According Tso, AE will put out 1,800 metric tons of the material next year using "fluid bed" technology, a process which he said can cut the cost production to an advantageous sub-US$25 per kilogram. He noted that most of incumbent polycrystalline-silicon makers can control costs at US$30 per kilogram at best.

With less expensive materials from the polycrystalline supplier, Motech will become more competitive. AE, according to Tso, will set aside half of its total capacity for production of the materials for Motech.

Industry watchers pointed out that the recent collapse of the world polycrystalline-silicon market has justified AE's adoption of "fluid bed" technology in lieu of a process developed by Siemens, which is more expensive.