Zhonghuan Semiconductor to expand its wafer capacity to 50 GW

China-based Zhonghuan Semiconductor, the world’s second-largest manufacturer of monocrystalline solar wafers, has formed a joint venture with the municipal government of Hohhot, the capital of Inner Mongolia, to build a new factory for monocrystalline ingots and wafers with a capacity of 25 GW in Hohhot.

According to a Chinese announcement Zhonghuan made to the Shenzhen Stock Exchange on March 19, the investment for the factory will amount to CNY9 billion (US$1.34 billion). Hohhot’s state-owned enterprises will invest CNY800 million (US$119 million) in the project. Zhonghuan will also benefit from subsidies for land, special government funds and a preferential electricity price.

The company did not specify the timeline for construction. It only said that its total production capacity after completion would exceed 50 GW. In late 2018 it was 23 GW.

Competitor Longi is aiming to reach a monocrystalline wafer capacity of 45 GW by the end of 2020. With their expansion plans, Longi and Zhonghuan are following the accelerating demand shift from multicrystalline to monocrystalline solar cells and modules.