News on production capacity

After a massive investment, the U.S.-based manufacturer will shut down the production of granular polysilicon at its plant in Moses Lake, Washington. The decision raises some questions.

The polysilicon price crash in China left its mark on the earnings of the world’s four largest polysilicon manufacturers Tongwei, GCL Technology, Daqo New Energy and Xinte Energy in the first half of 2024.

A period of weak demand until 2020 laid the ground for a polysilicon shortage that has triggered excessive capacity expansion in China. Now overcapacity provokes the next shakeout.

After the crash below US$10 per kg, the global polysilicon price has not yet reached its bottom. This lies below US$7 per kg – the cash cost level of the last producer needed to satisfy demand.