We are committed to reduce production cost so that we can provide quality polysilicon and wafers to the downstream solar cell and panel manufacturers at a lower price.
 
TCS is one of the main and most costly raw materials in the production of polysilicon and we are focused on reducing the cost of sourcing TCS through increasingly incorporating TCS in-house production capabilities into our production process.  
 
We invested in Taixing which has constructed a TCS production facility in Taizhou, Jiangsu Province, China. We have already successfully used the TCS produced by Taixing in our polysilicon production process.  
 
We also integrated the hydrochlorination process for our Xuzhou Phase I production facility in February 2008, our Xuzhou Phase II production facility in September 2008, and our Phase III production facility in December 2008. This process recycles STC back into TCS and reduces our reliance on third party suppliers for our TCS requirements.

Upon further ramp up of the Taixing TCS facility and the further improvement in efficiency of the hydrochlorination process, we expect to substantially reduce our reliance on third parties for our TCS requirements.