LDK Solar, Mosel Vitelic in wafer supply agreement

China's LDK Solar (NYSE: LDK) said today it signed an agreement to supply multicrystalline solar wafers to Taiwan's Mosel Vitelic.

Under the five year contract, LDK will deliver $190 million worth of solar wafers to Mosel Vitelic beginning in 2008.

Multicrystalline solar wafers are the principal raw material used to produce solar cells.

"Mosel has excellent engineering and manufacturing capabilities and we are pleased to support their growth plans," said Xiaofeng Peng, chairman and CEO of LDK Solar.

LDK said pricing and quantity is fixed for the first three years.

"We are delighted to secure supply of high-quality silicon wafers from LDK Solar," said Rebecca Tang, president of Mosel Vitelic.

Mosel Vitelic, which designs semiconductor integrated circuits, entered the solar cell business in 2006.

The company launched pilot production of its first product line in March, stating that its automated in-line system could achieve 30 megawatts annually.

The company is planning a second product line for 2008.

"We look forward to enhancing our relationship with LDK as we grow our solar business globally," said Tang.

Earlier this month, LDK announced plans to boost production with a new $1 billion polysilicon plant in Xinyu City (see LDK Solar building $1B polysilicon plant).

LDK expects to complete construction and reach production capacity of up to 6,000 metric tons of polysilicon by the end of 2008 and 15,000 metric tons by the end of 2009.

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