Daqo to supply 41,000MT of polysilicon to leading 210mm wafer producer TZS

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Major China-based polysilicon producer Daqo New Energy has signed a three-year high-purity polysilicon supply agreement with Zhonghuan Semiconductor (TZS), totalling 41,000MT.

Daqo will report 2020 financial results next week and is expected to confirm polysilicon production reached within the range of 76,700MT to 77,200MT last year, compared to its nameplate capacity of 70,000MT.

Although Daqo did not disclose the annual supply volumes to TZS, management had noted in their third quarter earnings conference call that any new supply contracts would have lower volume shipments in the first year with higher levels available in subsequent three or four year contracts, due to capacity constraints.

Daqo already has plans in place to expand polysilicon production at its major plant in Xinjiang by a further 35,000MT to 40,000MT at a cost of around RMB5.0 billion (US$773 million). Previously, Daqo has been able to expand capacity within 12 months at the Xinjiang plant.

Due to polysilicon supply constraints in China, major purchasers have moved quickly to secure large quantities of polysilicon through the next three years. New plant expansions to have started last year are limited, and even those would take around two years to build and ramp to volume production.

Daqo’s major supply deals include JA Solar, LONGi Green Energy Technology and Trina Solar, all major ‘Solar Module Super League’ (SMSL) members and integrated wafer producers.

No financial details were disclosed about the TZS deal.

Read Next

March 17, 2021
Emergent wafer provider lands second poly supply deal this week as it eyes 50GW of 210mm large-size solar wafer capacity by 2023
March 16, 2021
Tianjin Zhonghuan Semiconductor (TZS) is setting its sights on achieving a 150% increase in 210mm monocrystalline wafer capacity by the end of 2021.
March 9, 2021
In the full-year 2021, Daqo said it expects to produce approximately 80,000 to 81,000MT of polysilicon, compared to 77,288MT in 2020. The slight increase will be due to debottlenecking activities.
March 5, 2021
Wafer and equipment provider pens three-year deal with Daqo, set to commence in July this year
February 9, 2021
Major China-based polysilicon producer Xinte Energy is planning the world's single largest polysilicon production complex.
February 2, 2021
Large-wafer size producer Tianjin Zhonghuan Semiconductor (TZS) is to build a new 50GW 210mm (G12) mono-wafer manufacturing hub in Ningxia Hui Autonomous Region at a cost of around RMB12 Billion (US$1.86 billion).

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021