The Chinese solar wafer maker also raised its 2008 sales and shipment forecasts.

The company said solar wafer prices declined nearly 50 percent in the third quarter.

Established Chinese solar wafer companies are least affected.

Gutierrez added that any correction in the solar wafer business could be offset by continuing strong demand for polysilicon.

It expects solar wafer and module shipments of 1.6-1.7 GW in 2011, up 42-48 percent from estimated 2010 levels.

Also helping is the company's strategy of keeping solar module capacity higher than solar cell capacity, and solar cell capacity higher than solar wafer capacity.

Analysts also favor Chinese makers of cutting wires like Henan Hengxing Science & Technology, whose wafer-cutting steel wires are winning over local solar wafer firms.

Solar wafers and solar cells are components of solar modules.

Solar wafers are used to make the cells that transform sunlight into electricity in panels.

Solar wafers are a component of solar cells, which in turn are part of solar modules.

The operation makes solar wafers, cells and panels.

Zaman thinks the company's expansion plans and continuing pricing strength for solar wafers will help LDK brighten its financial picture.

The plant is the world's largest of its type making solar wafers, cells and panels that harness the sun's energy.

The company's technology could lower the cost of manufacturing solar wafers by about 50 percent, the DOE said in a statement.

Scrap polysilicon accounts for up to 30 percent of silicon fed into some of the solar wafers and panels in China.

Through Solar business segment, the Company is capable of manufacturing upstream and midstream products, such as ingots, solar wafers and solar cells.