Taiyo Nippon Sanso Corp. (TNSC) has reportedly announced plans of late to construct a factory for producing monosilane gas, in partnership with German chemical company Evonik Degussa GmbH.

A gas used in solar cells production, TNSC clearly sees the value in investing in this product and will hold the sales rights in both Japan and Asia.

The partners will invest a combined ¥20bn ($208.96m) in the new plant, which will be built in Yokkaichi, Mie Prefecture. Slated to come on-stream in early 2011, the plant will be capable of annually producing 1,000 tons of monosilane gas - an insulator for semiconductors.

A joint venture that will oversee quality control and sales of the gas will be set up by the end of September 2010, with TNSC taking a 75% stake and Evonik’s Japanese subsidiary investing 25%. TNSC will hold sales rights in Japan and Asia.

The Japanese industrial gas producer has been selling output purchased from monosilane suppliers, but is now preparing an integrated manufacturing and sales structure. The company aims to have the new plant at full operation within three years.