Semiconductor and Electronics Giant Samsung is entering into production of polysilicon setting up a 10,000 ton plant in an equal JV with US Poly Producer MEMC.The plant will be set up in South Korea and will go onstream by 2013 as it takes around 2 years to set up a plant.Note Samsung had recently started production solar crystalline silicon solar panels which uses polysilicon as raw material.Samsung has a strategy for manufacturing crucial raw materials inhouse for its different product lines.For example Samsung has a multi billion dollar JV with Corning to manufacture LCD glass in South Korea and a JV to make wafers for semiconductors with Wacker.It uses the expertise and technology of its JV partners to get into raw material production.The JV partners get a huge customer for their products and are happy to go along with Samsung in these Joint Ventures.
Samsung has become the No. 2 in mobile phones after taking over the No.1 mantle in semiconductors sometime ago.It is also No.1 in the production of LCD TVs.The entry of Samsung into solar panels is a dangerous sign for the incumbents as Samsung has the balance sheet and the pedigree to become No.1 in every industry that it enters into.While other Korean conglomerates like LG,Hanwha,Hyundai have also made big strides,Samsung is the most dangerous amongst them.Samsung has made major plans to enter the Green Industry in a big way.It has signed a multi billion investment contract to build a huge offshore wind farm off Ontario and also plans to build solar plants.
Samsung Fine Chemicals Co. agreed with MEMC Electronic Materials Inc., a U.S.-based maker of silicon wafers, to set up an equally owned venture for a polysilicon plant in South Korea.The two companies will build the facility on an existing Samsung Fine Chemicals property in Ulsan, according to an e- mailed statement issued jointly.The plant, which is expected to start operating in 2013, will have an initial capacity of 10,000 metric tons annually, according to the statement. The cost of the facility wasn’t disclosed.Samsung Fine Chemicals will invest about 200 billion won ($179 million) in the venture, it said today in a separate regulatory filing.