Taiwan-based solar-grade polycrystalline silicon wafer maker Green Energy Technology (GET), crystalline silicon solar cell maker Motech Industries and polycrystalline silicon (material) maker Taiwan Polysilicon on March 14 signed an agreement for establishing a joint venture with initial paid-in capital of NT$1.0 billion (US$33.9 million) to produce solar-grade polycrystalline silicon wafers, according to GET and Motech.

GET, Motech and Taiwan Polysilicon will have respective stake ratios of 40%, 30% and 30%.

The establishment of the joint venture is to vertically integrate the three shareholders' operational strengths to create synergy, GET and Motech pointed out. While the joint venture will produce the same product as GET's, it will be independently established to meet demand from certain clients and GET will expand its production capacity as originally planned, the company emphasized.

According to industry sources in Taiwan, GET's largest stake means substantial operating right of the joint venture because the company possesses manufacturing technology of solar-grade ingots and wafers.

Motech's planned capacity expansion will also be independent of the joint venture, with annual capacity of solar-grade crystalline silicon wafers to be increased from 180MWp in equivalent in 2010 to over 500MWp in 2011 and that of solar cells from 1.2GWp to 1.5GWp.