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

August 20, 2021
LONGi has increased its wafer prices for the first time in nearly two months with the industry braced for continued high prices throughout the rest of the year.
August 19, 2021
Major polysilicon producer Daqo New Energy has unveiled plans to increase its annual production capacity to 270,000 metric tons (MT) by 2024 while also plotting a course for dominance of the n-type polysilicon market.
July 23, 2021
Polysilicon manufacturer Daqo New Energy has completed its Initial Public Offering (IPO) of its main operational subsidiary Xinjiang Daqo New Energy on the Shanghai Stock Exchange’s Sci-Tech innovation board.
July 13, 2021
Daqo New Energy has applied for an initial public offering (IPO) on the Shanghai Stock Exchange's Sci-Tech innovation board (STAR Market).
July 9, 2021
The US government has added a host of new China-based solar companies to its Entity List, effectively banning imports of their products into the country.
PV Tech Premium
June 25, 2021
Yesterday the US government ended months of speculation by enacting a withhold and release order (WRO) on solar imports to the US linked to specific polysilicon providers in China suspected of having used forced labour. Liam Stoker analyses what we know so far and, crucially, what the industry still needs to know before it can proceed.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021