Daqo signs investment agreement to build new silicon-based facility in Xinjiang

Facebook
Twitter
LinkedIn
Reddit
Email
Despite prices of polysilicon plummeting in 2023, Daqo aims to increase its capacity with a new facility. Image: Daqo New Energy.

Xinjiang Daqo, the Chinese subsidiary of polysilicon manufacturer Daqo New Energy, has signed an investment agreement to build a new silicon-based facility in China.

Located in Shihezi, in the Xinjiang province, the project will be built in two phases, with the first phase comprising 50,000MT of annual polysilicon capacity, 150,000MT of silicon metal production and one million pieces of silicon seed rod and an investment of nearly RMB7.5 billion (US$1 billion).

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The second phase will double the capacity of polysilicon and silicon metal production, while increasing by 1.2 million pieces of silicon seed rod and an investment of almost RMB7.5 billion.

Daqo has not disclosed when each phase is expected to be completed, however it said it is contingent upon market conditions, Xinjiang Daqo’s shareholder approval and relevant government filings and approvals.

Despite plummeting polysilicon prices in 2023, which lowered Daqo’s revenue as well as the average selling price of polysilicon, the company aims to increase its production capacity.

Evolution of Daqo’s polysilicon production versus capacity sold. Chart: PV Tech.

With the new facility being located in the province of Xinjiang, this could limit Daqo to supply its polysilicon to the US market or the production of modules exported to the US, due to the current Uyghur Forced Labor Prevention Act (UFLPA) that prevents goods produced in that region to enter the country, as they are assumed to be produced using forced labour. The UFLPA is expected to have a bigger impact on the US solar industry than the anti-dumping/countervailing duty (AD/CVD) tariffs did. In 2022, 2GW worth of solar PV modules were detained at the US border as a result of the UFLPA.

Xiang Xu, CEO of Daqo New Energy, said: “We are delighted to announce our latest expansion plan that will allow us to leverage Shihezi’s advantages in rich natural resources and attractive electricity rates that are unmatched by any other location. In particular, the silicon metal project is strategically important to the company’s ability to deliver sustainable growth. Integrating our upstream supply will enhance our competitive advantages in cost and quality, as well as minimise raw materials price fluctuations.”

Read Next

September 16, 2025
Chinese polysilicon producer GCL-Tech has entered into a strategic financing agreement with Infini Capital, a globally renowned investment institution backed by a Middle Eastern sovereign wealth fund.
September 15, 2025
Australia has reached 26.8GW of installed rooftop solar at the end of the first half of 2025, according to a report from the Clean Energy Council (CIC).
September 9, 2025
The US installed 17.92GW of new capacity in the first half of 2025, with quarterly declines in additions for utility-scale and residential solar.
September 4, 2025
US polysilicon company Highland Materials has aimed to begin construction at its polysilicon plant in the second half of 2026.
Premium
September 4, 2025
PV Talk: Highland Materials' CEO Richard Rast explains how the company aims to compete in the polysilicon landscape through US innovation.
August 29, 2025
The first half of 2025 has been the strongest year for UK solar energy generation on record, according to a new report think tank Ember.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA