UPDATE 1-LDK Solar to begin making silane gas for chips

* Bid to supply solar, semiconductor, panel makers

* Commercial output to begin in Q2 2012

NEW YORK, April 11 (Reuters) – LDK Solar Co (LDK.N: Quote, Profile, Research) said it
would spend $35 million to begin producing silane gas,
expanding its operations to supply China’s growing solar,
semiconductor and flat panel display businesses.

The Xinyu City, China-based company, one of the world’s
largest makers of the polysilicon wafers that are used to
construct solar panels, said it expects to begin construction
of a silane plant in the third quarter, with commercial
production of the gas set for the second quarter of 2012.

Silane is used in the process of applying polycrystaline
silicon layers onto wafers when making semiconductors.

“There is growing demand for silane in China, but there is
not a domestic supplier,” Xiaofeng Peng, LDK’s chairman and
chief executive, said in a statement on Monday.

The new manufacturing line will be at LDK’s Mahong Plant in
Xinyu City.

Shares of LDK, which closed at $11.71 on Friday on the New
York Stock Exchange, have gained 11.8 percent this year.
(Reporting by Matt Daily; editing by John Wallace)

UPDATE 1-LDK Solar to begin making silane gas for chips