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7/27/2019 MEMC Electronic Materials.pdf
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MEMC Electronic Materials From Wikipedia, the free encyclopedia
MEMC Electronic Materials
Type Public
Traded as NYSE: SUNE
Industry Semiconductors
Founded 1959
Headquarters St. Peters, Missouri
Key people Ahmad Chatila, President & CEO
Products Polysilicon, SemiconductorWafers , Solar
Wafers,Photovoltaic Plants, Solar Modules, Solar
Energy
Revenue US$1.16 billion (2009)[1]
Operating
income
US$127 million (2009)[1]
Employees 6000 (2013)
Website [3]
MEMC Electronic Materials changed its name to SunEdison on May 30, 2013 to reflect the company's focus on
solar energy.[2] The company is aUnited States manufacturer of silicon wafers for the semiconductor industry as
well as solar wafers and Silvantis(R) Solar PV Modules. Originally established in 1959 as the Monsanto Electronic
Materials Company, a business unit of Monsanto Company, the company is based in St. Peters, Missouri. The
company solar energy headquarters is located in Belmont, California with offices throughout the world.
Ahmad Chatila is the current President and Chief Executive Officer of MEMC. Mr. Chatila was appointed President
and Chief Executive Officer and a member of the Board of Directors of MEMC on March 2, 2009.[3]
Contents
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[hide]
1 History
o 1.1 Foundation
o 1.2 Expansion
o 1.3 Change of ownership
o 1.4 Solar market entry
o 1.5 Recent developments
2 Business segments
3 Production facilities
4 References
5 External links
History[edit]
Foundation[edit]
Monsanto Electronic Materials Company (MEMC) was established on August 6, 1959, as part of the U.S.-
based multinational corporation Monsanto. In the same year MEMC started the production of 19-mm silicon wafers
in St. Charles County, Missouri. As one of the first corporations to produce semiconductor wafers, MEMC is
considered a pioneer in this field, its innovations becoming industry standard for years. MEMC used
the Czochralski process, developed Chemical Mechanical Polishing (CMP) and started production of 1,5-inch-
wafers. In 1966 MEMC installed the first reactors for production of EPI-wafers and develops zero-dislocation-
crystal-growing.
Expansion[edit]
During the 1970s, MEMC opened a production plant in Kuala Lumpur , Malaysia. Step by step, diameters of wafers
were increased to 5 inches. In 1981 MEMC constructed a production and R&D-facility in Japan, specifically
in Utsunomiya, as the first non-Japanese corporation. Three years later, the production of 200 mm wafers was
started by MEMC on economic scale, with the corporation taking on a pioneering role again.[4]
Change of ownership[edit] High price pressure from Japanese competition led to an ever increasing pressure on MEMC during the 1980s.
Despite increasing revenues MEMC had to account for losses for several years, leading to the decision of
Monsanto to sell the company. In 1989 MEMC was bought by Dynamite Nobel Silicons (DNS), a subsidy of the
German Hüls AG, which itself is part of the GermanVEBA AG. DNS already operated silicon wafer plants
in Merano and Novara, Italy and integrated them within the new MEMC Electronic Materials, Inc. Hüls supported
the new subsidy with 50 million USD, mainly used for research and development. MEMC started the production
of granular polysilicon in 1991 and as the first company produces 300 mm wafers on a commercial scale in 1991.
Four years later MEMC acquired production capacities for granular polysilicon in Pasadena, Texas.
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Trading of MEMCs stock at the New York Stock Exchange started after an initial public offering in 1995. VEBA
converted part of its stock into 440 million USD, but retained the majority voting rights in the corporation. The
cyclical downturn in the semiconductor business hit MEMC hard. In 1998 the company reported a loss of 316
million USD with revenues of 759 million USD. A significant improvement in turnover and earnings figures was
achieved in the following years.
In June 2000 VEBA AG, still holding 72% of MEMC, was merged with VIAG to form the new E.ON AG. E.ON
wanted to focus on its core businesses and assigns Merrill Lynch to sell MEMC. Merrill was unable to find a buyer
until MEMC announced that it was on the verge of illiquidity in the middle of the year. Finally E.ON is able to agree
on a deal with the private-equity-companyTexas Pacific Group (TPG). MEMC was sold for a symbolic dollar and
150 million USD in credit lines.[5][6][7]
By restructuring the debt of MEMC TPG was able to raise its share on the company. TPG conducts cost-cutting
measures and cut the number of employees from 7,000 to 4,000. In addition it convinced customers that MEMCwill stay in business. The market share of MEMC rises again and by 2002 MEMC reported positive earning figures.
After a significant improvement of key figures, in 2005 TPG reduced its share on MEMC to 34% through a
secondary offering. The revenue of this transaction is more than 750 million USD, none of them going to the
coffers of MEMC.[8]
Solar market entry[edit]
With the boom of the photovoltaic industry MEMC was able to agree on several long-term contracts for delivery of
solar wafers. Starting in 2006 a volume of several billion USD is contracted, e.g. with Suntech Power ,[9][10] Tainergy
Tech,[11] Gintech Energy[12] or Conergy.
Based on high spot prices these contracts not only guaranteed high delivery volumes at fixed prices, but MEMC
was also able to collect significant prepayments. Already in the middle of 2008 the significant drop in prices for
solar wafers led to disputes over those long term agreements. MEMC had to cut the deal with Conergy with a
volume of 8 billion USD in half. Despite that, Conergy applied to the courts to declare the contract invalid and void.
Only in 2010 did both companies agree to renegotiate the deal out of court. MEMC had to agree on a reduction of
the sales volume to less than one billion USD as the original contractual conditions would place Conergy in an
economic position it could not survive.[13][14]
Recent developments[edit]
In 2009 MEMC and Q-Cells—specialized on construction and operation of photovoltaic plants—found a joint
venture to erect a photovoltaic plant with 50 MWp in Straßkirchen, Bavaria. Both partners invested 100 million
USD each, in return for a 50% ownership on the project. As planned, the plant was sold to an alternative energy
fund of Nordcapital after operations started at the beginning of 2010.[15][16]
At the end of 2009 MEMC bought SunEdison, a North-American company planning large-scale photovoltaic
projects, and financing, constructing and operating them. SunEdison is the largest operator of solar power plants
in North America. The company was taken over for 200 million USD, 70 per cent thereof paid in shares of MEMC,
30% in cash. An additional 90 million USD was to be paid depending on target achievement in 2010 .[17][18]
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MEMC acquired the California-based solar tech company Solaicx mid-2010. By paying 76 million USD, MEMC got
access to the continuous crystal pulling technology of Solaicx, which enabled the production of cheap mono-
crystalline solar wafers.[19]
In February 2011 Samsung Fine Chemicals and MEMC announced a 50/50-Joint Venture to build a polysiliconproduction plant in Ulsan, South-Korea. The plant will have an initial capacity of 10,000 tons per annum.[20]
December 2011 MEMC announced restructuring measures to react on a cyclical downturn in its semiconductor
business and a slump in the whole supply chain of photovoltaic modules. A headcount reduction of 1,300
employees (18% of the workforce) and a reduction of capacity for polysilicon and solar wafers was announced.
Restructuring charges of 1 billion USD, 180 million USD thereof cash costs was announced .[21]
Business segments[edit]
Since the acquisition of SunEdison MEMC has had three reporting segments.
Semiconductor Wafers delivers wafers to the electronics industry. Products of MEMC include 300 mm
wafers, production capacities allow for 2 million wafers per month. Apart from plants in Asia
(Utsunomiya, Japan; Chonan (South Korea); (Taisil), Taiwan ; Kuala Lumpur und Ipoh (both Malaysia) MEMC
operates a production facility in Novara (Italy). Production plants in theUnited States (St. Peters,
(Missouri), Sherman (Texas)) are scheduled to be closed and capacities to be moved to Asia. MEMC
produces polished and epitaxial wafers, High Resistivity Wafers and SOI Wafers. Main competition in this
segment comes from SUMCO, ShinEtsu, Siltronic and Siltron. The market share of MEMC is roughly 12 per
cent.
Solar Materials: MEMC produces Polysilicon in purities usable in the solar and semiconductor industry
in Pasadena, (Texas)) and Merano, (Italy). Production capacities equal 10,000 tons per annum, an expansion
to 12,500 by the end of 2011 was announced. The material is mainly used for their own following production
steps, sales to the spot market occurred between 2006 and 2009. Apart from opportunistic sales of silanes the
segment sells mainly solar wafers. As their own productions capacities of 600 MW were not sufficient, MEMC
also had tolling partners to produce these wafers.
SunEdison offers customers access to solar power without financing the individual projects generating the
power. SunEdison collects capital from investors and uses it to construct photovoltaic plants (installing MEMC
Solar Wafers in some cases). The plants are operated by SunEdison after construction. Investors receive a
cash flow from sold solar power, including subsidies from governmental organizations. The solar power is sold
to commercial, government, and utility customers.