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Conergy cut its 10-year wafer supply contract with MEMC Electronic Materials Inc by as much as half, driving MEMC's shares down to a 52-week low.
The sales volume of the contract has been adjusted to $4 billion compared to $7 billion to $8 billion in the original agreement, the companies said in a statement.
Shares of MEMC, which supplies silicon wafers to the chip and solar industries, tumbled 6 percent to touch a 52-week low of $49 in trading before the bell.
In a separate release, MEMC said it agreed to supply solar wafers to Taiwan's Tainergy Tech Co Ltd that would generate between $3 billion to $3.5 billion in revenue.
Tainergy will advance funds to MEMC in the form of a refundable capacity reservation deposit. In addition, MEMC will be eligible to purchase a 10 percent interest in Tainergy.
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