MEMC Electronic Materials has finalized the solar grade silicon wafer supply deal with China-based Suntech Power Holdings that could generate between $5 billion and $6 Billion US dollars in revenue for MEMC over the 10-year contract period.

Under the terms of the definitive agreement, MEMC will supply solar wafers to Suntech with pre-determined pricing, on a ‘take or pay' basis beginning in the first quarter of 2007, according to the company.

Suntech will advance funds to MEMC in the form of an interest-free loan or security deposit which will be used by MEMC for expansion of MEMC's manufacturing capacity.
In addition, MEMC has received a warrant to purchase an approximately 4.9% equity stake in Suntech.

In April 2006 MEMC announced plans to supply Motech, another solar power manufacturer with solar wafers that could have generated up to $1.6 billion in revenues for the company over an 8 year period, however the deal fell through in early July 2006 as both sides could not agree on financial terms, according to MEMC.