Taipei, Sept. 1, 2008 (CENS)--Silicon-wafer maker Sino-American Silicon Products Inc. of Taiwan recently signed a five-year contract to buy NT$7.23 billion (US$233 million at US$1:NT$31) worth of crystalline silicon materials from SILFAB spa of Italy, in which it has invested 30 million euros, beginning 2010.

The deal will secure Sino-American a stable supply source of the raw materials for its products, ensuring steady growth of its sales and production.

The investment in SILFAB is a Sino-American`s important deployment in upstream sector of the solar-energy industry. The Taiwan company declined to comment on the details of the deal, but it said the Italian supplier has above-standard technology and research and development capabilities, enabling the firm to enter volume production in the short time.

Sino-American is another Taiwan`s silicon-wafer supplier to develop presence in upstream sector of solar-energy industry after Motech Industrial Inc. buying into AE of the United States and Wafer Works Corp. taking a shareholding in Universal Semiconductor Corp.

Industry watchers estimated these investments would help sharpen competitiveness of Taiwan`s solar-energy industry globally.

With steady material supplies secured, Sino-American is aggressively expanding output capacity, planning to devise its second factory with maximum output of 400 megawatts of solar wafers. Its total output will rise to 640 megawatts in first quarter next year with the new capacity joining existing capacity of 240 megawatts of wafers at first factory.

(by Ken Liu)