As per the agreement, Centrosolar will supply TSMC with an initial module capacity of 100MW per year using solar cells provided by TSMC.

Centrosolar will build up the capacity required for this agreement in a new production building adjacent to its plant in Wismar, Germany, and the first deliveries under the agreement are due in the third quarter of 2011.

It is expected that the construction of a new production hall and warehouse in Wismar will give Centrosolar the space to increase its existing capacity from currently 200MW to up to 500MW per year in line with demand.

The companies said that they are also planning the possibility of further collaboration in the areas of product development and process engineering.