Hemlock Semiconductor remains ‘sold-out’

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Despite the first-half slump in PV installations and significant inventory build across the PV supply chain, leading polysilicon producer Hemlock Semiconductor would seem to be riding its 50th year in business in style, as Dow Corning management noted that the polysilicon JV arm had remained ‘sold-out’ in the first half of the year and the situation would remain the same for sometime.

Despite the tough market conditions, high-grade polysilicon producers such as Hemlock and Wacker that also have significant scale are able to attract Tier 1 PV consumers, regardless of the macro-business environment.

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In reporting first-half financial results, Dow Corning’s CFO, J. Donald Sheets said in a statement that, “Dow Corning’s polycrystalline silicon segment through our Hemlock Semiconductor Group joint venture continues to sell all of its production, and remains sold out for the foreseeable future. While there has been some softening in the solar industry in 2011, we believe the solar industry will continue to grow at a rapid pace over the long-term as regions seek clean, renewable, domestically-generated sources of energy.”

Although Dow Corning does not break out Hemlock revenue, the company as a whole posted sales of US$1.67 billion in the first half of the year, or 8% higher than the same period last year.

Hemlock Semiconductor began operations in 1961.

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