Tianjin Zhonghuan Semiconductor (TZS) has more than doubled its revenue in the first half of the year as the wafer provider took advantage of what it described as a rapidly developing PV industry.
TZS and parent company TVL Technology Group reported its H1 2021 financial results late last week, with TZS confirming operating income of US$2.7 billion, equivalent to a 104% increase year-on-year. This helped take net profit for the six-month period to US$291.42 million, itself equating to a 160% increase on the division’s profit in the first half of last year.
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TZS said the solar PV industry had “developed rapidly” over the reporting period, with the company having been able to leverage technological advantages, a new product structure and enhanced production capacity to its benefits.
The company has targeted leadership within the G12, 210mm monocrystalline wafer market and in H1 2021 the company laid claim to having captured more than 90% of the overall market for 210mm wafers, ramping up production capacity in the process. TZS noted that the G12/210mm solar wafer’s share of the market had risen from 6% last year to 15% in the first half of 2021, indicative of broader industry trends towards large-size wafers and modules.
At the start of the year TZS said it intended to have 55GW of 210mm mono wafer capacity by the end of the year. Its current total production capacity stands at 70GW, of which 56% – around 39.2GW – is 210mm.
Central to the company’s ambitions is its 50GW G12 wafer project in Ningxia, dubbed the Ningxia Zhonghuan Phase VI project. TZS said construction of the facility had started on 18 March 2021 and will be complete by the end of this year before reaching full production capacity by the end of 2023.
However TZS also hinted at how a tightening of the supply chain, well documented within the industry, had been witnessed. The company has sought to establish long-term supply chain partnerships in response, easing those constraints as TZS looks to scale up its production capacity.
TZS also lauded innovations to its manufacturing process, which reduced its polysilicon consumption per piece by 2%, helping boost the margin of its solar products overall.