UBS is positive on MEMC (NYSE:WFR) saying their discussions with industry contacts found that MEMC has decided to sell more of its polysilicon to solar customers on the spot market in 1Q07 instead of using its polysilicon to make ingots for the manufacture of 300mm semiconductor wafers in its factory in Taiwan. Firm's channel checks continue to find solid demand for polysilicon with spot prices still well above $200/kg.
According to an article in the Boston Herald, Schott's (#7 solar module company) solar module factory in Massachusetts has been unable to procure granular polysilicon and Schott is trying to sell this factory. They believe MEMC was Schott's granular polysilicon supplier and MEMC is instead likely selling its polysilicon to higher paying customers in the spot market.
Firm's recent channel checks in Taiwan have also found strong 300mm semiconductor wafer demand from Powerchip, Promos, and Inotera where they estimate MEMC's share is around 20%. In addition, industry research has found that TSMC and UMC are likely to slowly order more wafers again in late
1Q07.
Maintains Buy and $60 tgt.
Notablecalls: Nothing huge but I do like the comments regarding WFR selling its polysilicon to higher paying customers in the spot market. Comments from Taiwan are also encouraging. Like the chart. This one may be moving higher in the n-t.
According to an article in the Boston Herald, Schott's (#7 solar module company) solar module factory in Massachusetts has been unable to procure granular polysilicon and Schott is trying to sell this factory. They believe MEMC was Schott's granular polysilicon supplier and MEMC is instead likely selling its polysilicon to higher paying customers in the spot market.
Firm's recent channel checks in Taiwan have also found strong 300mm semiconductor wafer demand from Powerchip, Promos, and Inotera where they estimate MEMC's share is around 20%. In addition, industry research has found that TSMC and UMC are likely to slowly order more wafers again in late
1Q07.
Maintains Buy and $60 tgt.
Notablecalls: Nothing huge but I do like the comments regarding WFR selling its polysilicon to higher paying customers in the spot market. Comments from Taiwan are also encouraging. Like the chart. This one may be moving higher in the n-t.
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