Qimonda AG (NYSE: QI), a memory supplier with a diversified DRAM product portfolio, has entered the solar market through a joint venture with Centrosolar Group AG (C30.DE) to produce crystalline solar cells.
The companies will establish a production plant near Porto, Portugal next to an existing semiconductor factory of Qimonda.
Qimonda provides DRAM products for a wide variety of applications, including in the computing, infrastructure, graphics, mobile and consumer areas. The company generated net sales of Euro 3.61 billion in financial year 2007 and had approximately 13,500 employees worldwide.
"By entering the solar industry, we are addressing an attractive market with stable and high growth rates. We will leverage our core competencies in silicon-based, high-quality mass production to generate a new revenue stream for Qimonda," said Kin Wah Loh, President and CEO of Qimonda AG. "Together with our experienced solar partner Centrosolar we have developed a capital and resource efficient setup to start this promising new business."
The joint production plant will have a capacity of approximately 100 megawatts (MW) by the end of 2009 the companies said in a joint release.
Silicon supply for the initial capacity has been secured with wafers from LDK Solar. The companies will receive a total of 540 (MW) solar wafers over 5 years. The prices are initially fixed for each year, but do incorporate a flexible component to reflect the general market price trend from 2011 onwards.
The venture company will invest approx. EUR 70 million until September 2009. Approximately 70% of the financing is expected to be provided by local banks. In addition, the partners plan to apply for a funding package provided by Portuguese state authorities in accordance with European funding regulations, for which the first indications appear to be advantageous.
Centrosolar accounts for 49% of the equity of the venture company and will thus receive 49% of the production output. Centrosolar refinances its equity share by a 10% capital increase via a private placement. The placement is backed by a guarantee from a major shareholder.
Qimonda is investing 51% and will market its corresponding share of the production output, the company said.
The venture company will use the crystalline silicon technology leveraging the in-depth expertise of Qimonda in all relevant processing steps. After the ramp up phase, the solar cells will provide an electrical efficiency of more than 16%, the companies said.
Qimonda is also leveraging its experience with silicon suppliers as well as the availability of waste silicon from its DRAM operations to set up supply contracts with attractive terms.
About Centrosolar Group
Centrosolar Group AG manufacturers roof-top photovoltaic (PV) systems and has some 500 employees and revenues of Euro 220 million in 2007. Its product range comprises integrated PV systems, modules, mounting systems and solar glass. Centrosolar has PV module production plants in Wismar (Germany) and Doesburg (the Netherlands) and a solar glass plant in Fürth (Germany). The company has sales offices in Germany, Spain, France, Italy, Greece, Switzerland, the Netherlands and the USA. In 2007, Centrosolar generated 30% of its revenues outside of Germany. This rate is expected to increase to approximately 60% in 2008. Further information is available at www.centrosolar.com
About Qimonda AG
Qimonda AG is a leading global memory supplier with a broad diversified DRAM product portfolio. The company generated net sales of Euro 3.61 billion in financial year 2007 and had approximately 13,500 employees worldwide. Qimonda has access to five 300mm manufacturing sites on three continents and operates six major R&D facilities. The company provides DRAM products for a wide variety of applications, including in the computing, infrastructure, graphics, mobile and consumer areas, using its power saving technologies and designs.
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