Electronics: Long Term Silane Supply Agreement with REC

July 24, 2008

Silane (monosilane, SiH4) is a high purity gas and a key material used in the manufacturing of semiconductors, flat panel displays and photovoltaic products. The global market is growing at more than 25% per year thanks particularly to the booming demand in the solar panel market.

Air Liquide is today the world leader for Silane with more than 35% market share. This leadership is based on a strong position in the complete supply chain from production in Japan and sourcing from the USA through regional filling and analysis centers to total gas service teams for customers.

Air Liquide has just signed a new long-term supply agreement with Renewable Energy Corporation (REC). REC is also a global leading manufacturer of Silane, especially for its own polysilicon production needs. Under the terms of this contract, Air Liquide will source a sizeable part of its Silane requirements from REC.

In a worldwide context where demand for Silane could exceed supply capacity in the coming years, Air Liquide has signed this major sourcing agreement which doubles its access to Silane, while keeping the ambitious 2000 tons per year production expansion program with its partner Denal. Despite market pressures, this dual and balanced sourcing policy will allow Air Liquide to serve its customers and partners worldwide.

Christophe Fontaine, Vice-President Electronics Air Liquide Group declared: "This new Silane supply agreement with REC in the USA, combined with our production expansion in Japan, demonstrates again Air Liquide’s commitment to provide reliable and differentiated global Silane supply solutions to our customers. This strategic partnership, which complements our investment in Electronics Material Centers in Asia, confirms our global leadership in ultra pure Silane.”

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