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MEMC to create polysilicon venture with Japan's Tokuyama, Marubeni
ST. PETERS, MO--MEMC Electronic Materials Inc. here today said it reached an agreement with Japan's Tokuyama Corp. and Marubeni Corp. to create a joint venture for global distribution of granular polysilicon material for semiconductor wafers.
"In addition to uniting with one of the world's premier polysilicon manufacturers, this joint venture will open the door to the wider distribution and greater acceptance of granular polysilicon within our industry," said Ludger H. Viefhues, chief executive officer of MEMC. "Because granular polysilicon improves the economics of producing larger diameter wafers, the market for this product will grow as our customers continue to migrate to 8-and 12-inch wafers."
Under the terms of the agreement, MEMC will contribute its existing granular polysilicon operation while Tokuyama will provide cash and technology. Marubeni, the co-partner of Tokuyama, will also contribute cash to the new joint venture. Tokuyama and Marubeni will receive 45% and 15% ownership, respectively, with MEMC holding the remaining 40%.
The venture is expected to be created by the end of the first quarter 1998, following regulatory reviews and a definitive agreement between the three companies.
MEMC's granular polysilicon operation is based in Pasadena, Tex. The operation was bought by MEMC in July 1995 for $58 million. Since then, the Pasadena operation has increased its production capacity from 700 to 1400 metric tons. The expansion to 2700 metric tons of capacity will continue as planned and all current employees will be retained, said MEMC.
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