MEMC now plans to increase polysilicon production from 4,000 metric tons per year to 8,000 metric tons over a three year capacity increase plan. The company noted that demand for both semiconductor and solar power industries remains strong and prices of wafers have firmed in recent months.

"Although MEMC has been quietly working on expanding its polysilicon capacity, we are now formally announcing that we are targeting our polysilicon capacity to grow from approximately 4,000 metric tons per year to approximately 8,000 metric tons per year over the next three years, as dictated by market conditions, stated Nabeel Gareeb, MEMC's Chief Executive Officer. "The majority of this capacity will be usable for both semiconductor and solar wafer production and is anticipated to be accomplished within the constraints of our business model. This will provide us with significant opportunities to take advantage of a vertically integrated supply chain as compared to our competition, by providing security of supply for semiconductor wafer expansions and significantly increasing our penetration of the solar market. This polysilicon capacity expansion coupled with the opportunities available in the semiconductor and solar wafer industries would support an approximate doubling of our first quarter 2006 revenue run rate by the end of the decade, if market conditions allow," said Gareeb.

The company plans to use cash generated form operations to fund the expansion of capacity.