A Review of China’s Polysilicon Industry in 2009

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“The “once-in-a-century” financial crisis is giving rise to a global economic crisis, and its impact on the real economy is spreading along a “domino effect.” With the overall situation being such, the photovoltaic industry cannot remain unaffected. Polysilicon, one of the important raw materials in the photovoltaic industry, is naturally not spared either. “They were once the favorites of market funds; they gained investors’ favor by associating themselves with polysilicon, and even they themselves were tempted by the huge profits in this industry. However, as downstream demand declined and new production capacity began to be released in large volumes, these polysilicon-related stocks that were so popular and influential during the previous bull market suddenly found that instead of the feast they had hoped for, what awaited them was just the leftovers. ”Recently, the author came across that passage in a influential domestic financial newspaper. So, what is the current status of China’s polysilicon industry? What will be the fate of Chinese polysilicon companies in the face of the financial crisis, supply-demand imbalances, and the challenges posed by thin-film batteries? In fact, as early as the end of last year, the magazine \"Photovoltaic Information\" began planning this special report on \"An Overview of China’s Polysilicon Industry.\" In order to present an objective picture of the actual situation of China’s polysilicon manufacturers, the author conducted extensive industry research and interviewed these companies during various conferences, thereby obtaining detailed first-hand information. Next, please follow the author’s lead to gain an understanding of the current status of China’s polysilicon industry. A list of China’s polysilicon projects: Starting from the second half of 2006, driven by the high profits in the solar industry, there was a surge in the construction of polysilicon projects across the country. Currently, in China, the listed companies involved in polysilicon production include Nanbo Group, Tianwei Baobian, ChuanTou Energy, Leshan Power, Minjiang Hydropower, Tongwei Co., Ltd., Dongfang Electric, TBEA, Jiangsu Sunshine, Jiangsu Zhongneng, and Sunwoda LDK (a company not involved in silicon material production). Among these, Tianwei Baobian, Leshan Power, ChuanTou Energy, and Minjiang Hydropower each hold shares in Xinguang Silicon Industry. Private companies include Luoyang Zhongsi, Jiangsu Shunda, and Asia Silicon Industry, among others. Looking at the currently listed companies, the announced investment amounts amount to nearly 6 billion yuan, with the total investment reaching over 30 billion yuan. Next, let’s take a look at an overview of the polysilicon projects currently under construction and planned in our country, as well as their progress. As of March 2009, there were as many as 50 polysilicon projects in China that were already operational, under construction, or planned to be built. It is possible that some of these entities might withdraw due to the financial crisis or other reasons; these entities are listed below. There are 20 projects that have been put into operation. 1. Luoyang Zhongsi High-Tech Co., Ltd.: This company was established with joint investment from Luoyang Monocrystalline Silicon Co., Ltd., Luoyang Jinfeng Electrochemical Co., Ltd., the China Nonferrous Metals Engineering Design and Research Institute, and the Luoyang Finance Bureau. This polysilicon project is part of the \"863 Program\". The investment for the project with an annual production capacity of 300 tons of polysilicon was 240 million yuan; it came online in December 2005. At the same time, work began on the second-phase expansion, with an investment of over 400 million yuan to increase the production capacity to 1,000 tons per year. This expansion was completed and approved in February 2009. In addition, the company plans to build a polysilicon production facility with an annual output of 2,000 tons, along with related projects, for a total investment of 4.1 billion yuan. 2. Sichuan Xinguang Silicon Industry Technology Co., Ltd.: This company was established in 2000; Sichuan ChuanTou Energy Co., Ltd., which is controlled by ChuanTou Group, is its largest shareholder, with Tianwei Baobian holding a shareholding interest in the company. The company invested a total of 1.29 billion yuan to build a polysilicon production line with an annual capacity of 1,000 tons (which is a high-tech demonstration project approved by the **Planning Commission); production began successfully in March 2007. The output in 2008 was 800 tons. In addition, building on existing projects, Tianwei Sichuan Silicon Industry Co., Ltd., which was established through joint investment by Sichuan Investment Group, Tianwei Baobian, and Minjiang Hydropower, is carrying out a project to produce 3,000 tons of polysilicon per year in Xinjin County, Chengdu. Tianwei Baobian and Leshan Electric Power have jointly funded the establishment of Leshan Leidian Tianwei Silicon Industry Technology Co., Ltd. to carry out a similar project in Leshan, with an aim to start production in July 2009. 3. Dongqi Emei Semiconductor Materials Factory (Institute): This factory is the first state-owned technology enterprise in China’s semiconductor materials industry to integrate production, research, and pilot production into one cohesive framework. The polysilicon project at this factory is divided into two parts: In the first part, 490 million yuan was invested to build a production line capable of producing 500 tons of circuit-grade polysilicon per year within the existing Emei factory site, and this line came online at the end of March 2008 ； In the second phase, 3.6 billion yuan will be invested to build a polysilicon project with a capacity of 1,500 tons in Xiba Town, Wutongqiao District, Leshan City, as well as a photovoltaic industry project in Emeishan City. At present, the foundation-laying for Phase 1 of Part 2 has begun. 4. Jiangxi Saiwei LDK Solar High-Tech Co., Ltd.: Construction began on February 9, 2008, and it officially commenced operations on January 16, 2009. Saiwei LDK has established the world’s most advanced full-closed-loop recycling system; the control of its production lines is carried out using sophisticated distributed control systems for real-time monitoring and management, with all process components and waste being recycled. Affected by the financial crisis, the progress of the polysilicon production project, which was scheduled to start operations at the beginning of 2009, was delayed. The production of the total 6,000 tons of polysilicon was postponed by half a year, with capacity to be achieved by mid-2009. 5. Jiangsu Zhongneng Photovoltaic Technology Development Co., Ltd.: Its parent company is **GCL Group, with a total investment of over 7 billion yuan. In mid-June 2006, construction of the first phase of a solar-grade polysilicon production line with a capacity of 1,500 tons could begin in Xuzhou, Jiangsu, and the first batch of polysilicon was produced in September 2007. In the first quarter of 2008, polysilicon production reached 302 tons, and in the second quarter it was 359 tons. In June 2008, the second-phase project with an annual production capacity of 1,500 tons began trial production, and industrial-scale production was achieved in July. The first production line of the third-phase project began producing qualified products at the beginning of January this year. The chlorohydration plant project, developed and implemented in collaboration with Hualu Design Institute, has achieved significant results, with 98% of the by-product silicon tetrachloride being converted into trichlorosilane. 6. Ningxia Sunshine Silicon Industry Co., Ltd.: This company was established jointly by Jiangsu Sunshine Co., Ltd., Ningxia Dongfang Non-ferrous Metals Group Co., Ltd., and Ningxia Power Development and Investment Co., Ltd., with a planned polycrystalline silicon production capacity of 4,500 tons per year. The production process employs the improved Siemens method; in addition to introducing advanced foreign equipment for polysilicon production, the corresponding production technologies are also adopted. This results in low electricity consumption, reduced hydrogen usage, high output per reduction furnace, and low operating costs. Meanwhile, full automation of the entire process is achieved, giving the process the advantages of energy savings, reduced consumption, the ability to recover large amounts of by-products, as well as substantial recovery of waste heat. On December 23, 2008, the company’s first-phase project with an annual production capacity of 1,500 tons of polysilicon succeeded in producing 1.8 tons of product. The 12 pairs of silicon rods had a diameter of 128 millimeters and a length of 2.6 meters. Tests conducted by the Metallurgical Products Supervision and Inspection Station of Ningxia Autonomous Region showed that their quality was close to that of electronic-grade polysilicon as specified in the design requirements, with their parameters far exceeding those required for solar-grade polysilicon. The project is located in Shizuishan City, Ningxia. 7. Inner Mongolia Shenzhou Silicon Industry Co., Ltd.: Established in May 2007, this company is affiliated with the China Aerospace Science and Technology Corporation; its facilities are located in the Jinqiao Industrial Development Zone in Hohhot. The first phase of the project requires an investment of 1.78 billion yuan to build a polysilicon production line with an annual output of 1,500 tons. As of early March this year, 96.39% of the construction work for the first phase of Shenzhou Silicon Industry, which began in August 2007, has been completed, while 97.65% of the on-site construction tasks have been finished. Pilot production in March and April 2009 ； The company’s project manager told the author that, affected by factors such as the financial crisis and sharp fluctuations in the international prices of polysilicon, many companies in the industry have halted or delayed their construction projects. However, China Aerospace Science and Technology Corporation has not slowed down its efforts to develop a photovoltaic industry worth 10 billion yuan; the second phase of the polysilicon production project has already begun. Phase II of the project involves an investment of 2.68 billion yuan to build a polysilicon production line with an annual output of 3,000 tons; completion is expected by the end of 2009, with operations set to begin in early 2010. During the initial planning stage of the project to produce 1,500 tons of polysilicon per year, thorough research was conducted on domestic and international markets, future market fluctuations were analyzed comprehensively, and the impact of various uncertainties was carefully considered; a scientific and conservative approach was adopted in price estimation. According to the analysis of the static investment payback period in the feasibility report for the Shenzhou Silicon Industry project, it will take just over 5 years to recoup the costs for the first phase of the project. 8. Jiangsu Shunda Semiconductor Development Co., Ltd.: This company is one of the subsidiaries of the Shunda Group. Construction began in early 2007, with a total investment of $300 million; it has an annual production capacity of 1,500 tons of high-purity polysilicon. In September 2008, the company produced its first batch of polysilicon. On November 24 of the same year, the inauguration ceremony for Phase 1 of the project was held. ING, Goldman Sachs and others invested $100 million to acquire 26.7% of Shunda’s shares. 9. Asia Silicon Industry (Qinghai) Co., Ltd.: Established in 2006, the company planned to build a polysilicon production facility with an annual output of 6,000 tons in the Dongchuan Industrial Park within the Xining Economic and Technological Development Zone. The funding for this project came from Asia Silicon Industry Co., Ltd. in the amount of 95%, while Qinghai New Energy Research Institute Co., Ltd. contributed 5%. Phase 1 of the project is planned to produce 1,000 tons of polysilicon per year, with an investment amount of 790 million yuan; construction began at the beginning of 2007. The core technologies and main equipment for this project are imported from abroad, and the \"modified Siemens process\" is employed for closed-loop cyclic production. The entire production line is equipped with advanced distributed control systems for real-time monitoring and control. At the end of 2008, Asia Silicon’s thousand-ton polycrystalline silicon project was successfully put into operation, producing the first batch of polycrystalline silicon products on the Tibetan Plateau. The construction of the second phase, with an annual capacity of 1,000 tons of polysilicon, began in early 2009, and the construction period was one year. Ultimately, a polysilicon production capacity of 6,000 tons per year is achieved. 10. Yichang Nanbo Silicon Materials Co., Ltd.: Established in August 2006, this company was founded with joint investment from Nanbo Group, **Huayi Co., Ltd., and Yichang Liyuan Technology Development Co., Ltd.; it is part of Nanbo Group’s Solar Business Unit. The total investment in the project is approximately 6 billion yuan, with an overall capacity of 5,000 tons of high-purity polysilicon and 450 megawatts of solar cell modules per year. One of the phases of this project, intended to produce 1,500 tons per year of high-purity polysilicon, began construction in October 2006. By the end of 2008, the first batch of polysilicon rods was successfully produced; tests showed that their purity and various physical properties met the standards for **electronic-grade polysilicon. 11. Tongwei Group’s polysilicon production: The polysilicon project of Tongwei Group is planned to involve an investment of 5 billion yuan to build a polysilicon production line with an annual capacity of 10,000 tons. One of the construction phases involves an annual production capacity of 1,000 tons of polysilicon. Two different technologies are employed: one is a self-developed technology pilot line with an annual capacity of 200 tons, which began trial production at the end of August 2008; the other 800 tons per year are produced using the modified Siemens process, a traditional technology used in most similar projects in China, and production started at the end of 2008. The second phase of the project involved expanding production capacity at Wutongqiao in Leshan by adding a 3,000-ton production line by the end of June 2009, and adding two more 3,000-ton production lines at Jianwei in Leshan. 12. Wuxi Zhongcai Technology Co., Ltd.: Wuxi Zhongcai Group (comprising five key enterprises namely Wuxi Xindaizhong Steel Co., Ltd., Wuxi Yinguang Tin-Coated Sheet Co., Ltd., Wuxi Yinxing Coated Sheet Co., Ltd., Wuxi Yinrong Plate Industry Co., Ltd., and Wuxi Zhongcai Technology Co., Ltd.) established Wuxi Zhongcai Technology Co., Ltd. in 2006 to invest in a project aimed at producing 800 tons of solar-grade polycrystalline silicon per year. The first batch of 150 kilograms of polycrystalline silicon produced by Wuxi Zhongcai was delivered on August 1, 2007, thereby achieving the production target of 300 tons by 2008. The 3,000-ton polysilicon project planned to be built by Zhongcai Group also commenced construction in the Banqiao Industrial Park in Lianyungang in September 2008. 13. Wanzhou Daquan Polysilicon Project: This project is invested and constructed by Jiangsu Daquan Group, with a total investment of 6 billion yuan and an annual production capacity of 6,000 tons of polysilicon. According to the plan, the first phase of this project involved the construction of a polysilicon production line with an annual capacity of 1,500 tons; construction began in June 2007 and was completed in June 2008. The expansion project for the second phase was finished in the first half of 2009, raising the annual production capacity to 3,000 tons, with the ultimate goal of reaching 6,000 tons per year. On July 18, 2008, the first phase of Dachen Group’s 1,500-ton polysilicon production project was officially put into operation in Wanzhou, Chongqing. It operates on a fully closed-loop system, with electricity consumption of only about 150 kWh per kilogram. The second phase of expansion is progressing smoothly. 14. Henan Xuntianyu Technology Co., Ltd.: This company uses the \"physical purification method\" for polysilicon production, developed by the Shanghai Institute of Physics and Materials Science. The project is located in Fangcheng County, Nanyang, Henan, with a total investment of 1.7 billion yuan. It is designed to produce 6,000 tons of polysilicon suitable for use in solar cells per year; the first phase of the project, which enables annual production of 1,000 tons of 4N-5N grade polysilicon for solar cells, has already been completed and put into operation. 15. Jiangxi Tongneng Silicon Materials Co., Ltd.: Established as a joint venture between General Silicon Materials Corporation of the United States and Nanchang Ganyu Silicone Co., Ltd. The project is developed in four phases, with a total investment of 6 billion yuan; once completed, it will be able to produce 9,500 tons of polysilicon per year. At present, the first phase of the polysilicon production line with an annual capacity of 500 tons has been built and put into operation. Phase 2 of the project is still progressing as planned. 16. Ningxia Yinxing Energy Polysilicon Co., Ltd.: This company was established through a joint venture between Ningxia Power Generation Group and Ningxia Yinxing Energy Co., Ltd.; it invested in building a production line for solar-grade polysilicon with an annual capacity of 1,000 tons, and the factory is located within WuZhong Instrumentation Plant No. 2. The project was completed and put into operation in 2007. The solar cell modules manufactured from them were installed at the Yinchuan Solar Photovoltaic Power Plant of Ningxia Power Generation Group and came online for power generation in September 2008. 17. Yiyang Jingxin New Energy Technology Industry Company: Established with investment from Shanghai Guozhijie Development Co., Ltd., the total investment amounted to over 3 billion yuan. The company produces 5,000 tons of polysilicon and 2,000 tons of monocrystalline silicon per year, thereby creating a solar photovoltaic industry chain with supporting downstream industries. With an initial investment of 600 million yuan, one factory for producing 600 tons of monocrystalline silicon per year and another for producing 600 tons of solar-grade polycrystalline silicon per year have been built and brought online successfully. The 28,000-ton high-purity silicon plant is expected to be completed and put into operation in 2009. This project currently uses physical metallurgical methods to purify polysilicon. 18. Jiangxi Jingda Semiconductor Materials Co., Ltd.: It was established in November 2007, with Taizhou Jinko Semiconductor Co., Ltd. as the main investor. With an initial investment of 80 million yuan, the facility has an annual production capacity of 100 tons of polysilicon and was put into operation at the end of 2008 ； The second phase of investment amounts to 880 million yuan; it will enable an annual production of 1,000 tons of polysilicon. Construction is expected to begin in the second half of 2009, with operation starting in 2010. 19. Tangshan Silicon Industry Co., Ltd.: This company was established through a joint venture among Jidong Cement, Fengmi Technology, Baoye Group, and Jidong Chlor-alkali, with investment shares of 40%, 30%, 25%, and 5% respectively. The total investment in this project is 700 million yuan, with an annual production capacity of 1,000 tons of electronic-grade and solar-grade polysilicon. The project is located in the Photovoltaic Industry Park in Kaiping District, Tangshan City. The project commenced construction at the end of September 2007, and the products produced during trial production have met the technical requirements for solar-grade silicon materials, as verified by **authoritative testing institutions. 20. Polysilicon in Dawu County, Xiaogan: Built with an investment of 80 million yuan by Shanghai Guangji Silicon Materials Co., Ltd. Self-developed and trial-produced polycrystalline silicon material for solar cells with a silicon content of 99.9999%; there are no recent updates on this project at present. There are 20 projects under construction – 1. Guodian Ningxia Solar Co., Ltd.: The total investment for this project is expected to be 5 billion yuan, and it involves the construction of a facility capable of producing 5,000 tons of polysilicon per year; the project is located in the Shizuishan Industrial Park in Ningxia. Construction of the first phase began at the end of 2008, with plans to build a polysilicon production line with an annual capacity of 1,500 tons. The project is progressing smoothly; during the author’s telephone interview, Xie Menglin, deputy chairman of the Political Consultative Conference of the Ningxia Hui Autonomous Region, and his team were on site at the construction area of the company’s 2,500-ton polysilicon project to provide guidance. The project is expected to be completed and put into operation by the end of 2009. 2. Sichuan Ruineng Silicon Materials Co., Ltd.: Established in 2007, this company is backed by the British firm Ruineng Ltd. The project involves the construction of a polysilicon production facility with an annual capacity of 6,000 tons, requiring a total investment of 6 billion yuan. The facility is located in the Xiuwen Town Industrial Park, Dongpo District, Meishan City, Sichuan Province. One of these phases calls for the construction of a polysilicon production line with an annual capacity of 3,000 tons; construction began in April 2008, and the installation of the main structural elements is now nearly complete. Operation is scheduled to begin in mid-2009. The second phase, with a capacity of 3,000 tons per year of polysilicon, began construction in November 2008 and was put into operation in December 2009. 3. Sichuan Chuailei Industrial Co., Ltd.: The total investment in this company is approximately 5 billion yuan, used to build a project with an annual production capacity of 5,000 tons of polysilicon; the project is located in the Fine Chemicals Park in Xinjin County, Chengdu. One phase of this investment involved 1.2 billion yuan to build a production line for electronic-grade polysilicon with an annual capacity of 1,500 tons; construction began in September 2007, and the facility was completed and put into operation in mid-2009. 4. Nanjing Daliu Investment Group’s polysilicon project in Tuoketuo County: This project is jointly funded and developed by Nanjing Daliu Investment Group, American PPP, SCC, Xitu and other companies, with a total investment of 18 billion yuan. The production capacity of the project is 18,000 tons of polysilicon per year, and it is located in the Power Industry Park in Tuoketuo County, Hohhot. The project will be constructed in three phases, with completion planned within 5 years. The first phase is planned to require an investment of 2.6 billion yuan, with an annual production capacity of 2,500 tons of polysilicon; construction began in May 2008. To date, 800 million yuan has been invested in the project, and the civil engineering work is progressing smoothly. The main factory buildings, including the sulfur refinement workshop, reduction workshop, fire water tank, and circulation water tank, have all completed their foundation works ； The land survey work for the hydrogen production plant and the nitrogen production plant has been completed, and the main structures of the office building and the reception center have been topped out. The project is expected to be completed and put into operation in August 2009. The second phase of the project is scheduled to begin in May this year, but it may be delayed due to the financial crisis. The project aims to produce 15,000 tons of polysilicon per year; it will also include the construction of a power plant with a capacity of 1.8 million kilowatts (Phase 1: 2 × 300,000 kilowatts) ； Phase 2: 2 × 600,000 kilowatts) and 1 coal mine with an annual production capacity of 5 million tons. Completion and operation are expected by the end of 2010. 5. Luoyang Century New Source Group Co., Ltd.: This company was established in June 2008 by Luoyang Tianyuan Group. The first phase of its polysilicon production facility, with an annual output of 10,000 tons, had its foundation laid in Yichuan County in December 2008. The company plans to spend three years building facilities for producing 3,000 tons of polysilicon using the physical purification method, 1,000 tons using the sulfurization bed method with trichlorosilane, and 6,000 tons using the sulfurization bed method with silane; in addition, there will be a facility for producing 7,250 tons of silane. The total investment for these projects is over 5 billion yuan. 6. Chaoge Riguang New Energy Co., Ltd.: Established in early 2006, this company was founded with joint investment from the North Solar Energy Research Institute; it is mainly engaged in the production of solar cell modules as well as the design and development of photovoltaic components. The company’s polysilicon project is planned to have an annual production capacity of 1,000 tons. The project is located in Qi County, Hebi City; the first phase is designed to produce 300 tons per year, using a modified Siemens process. The total investment in this project is 250 million yuan. Construction began in April 2008, and the project is still under construction, with the date of commissioning yet to be determined. The second phase of the project involves building a polysilicon production line with an annual output of 700 tons. 7. Jiangsu Xinsuanglong Silicon Electric Resources Co., Ltd.: Established through a joint venture between Jiangsu Xinsuanglong Investment Guarantee Company and **Lianzhong, with an annual production capacity of 1,200 tons of polysilicon. The project commenced in January 2007, with a total investment of $40 million. It is planned to be built in three phases and completed over 3 years. Phase 1 is still in progress. 8. Lianyungang Zhongcai Technology Co., Ltd.: Established in August 2008, this company is funded by Wuxi Zhongcai Technology Co., Ltd. With a total investment of 2.5 billion yuan, it aims to achieve a production capacity of 6,000 tons of circuit-grade polysilicon; the first phase, with an annual production capacity of 2,000 tons, is scheduled to be completed and put into operation in the second half of 2009. 9. Shaanxi Tianhong Silicon Materials Co., Ltd.: This project is controlled by Shaanxi Non-ferrous Metals Holding Group Co., Ltd., and it is jointly invested in and developed together with Shaanxi Yanchang Petroleum (Group) Co., Ltd., Xi’an Lujing Technology Co., Ltd., and Shaanxi Investment Group (Co., Ltd.). The total planned investment is 3.7 billion yuan, with an annual production capacity of 3,750 tons of polysilicon. The first phase will establish a production line capable of manufacturing 1,250 tons of microelectronics-grade polysilicon per year; the construction period is expected to be 24 months. The project began construction in September 2007, and the company is currently in the stage of building the facility. The project introduces foreign technologies and major equipment in their entirety, adopting a closed-loop system. 10. Shaanxi West Silicon Industry Co., Ltd.: The project is located in the industrial park of Chengcheng County, Shaanxi Province. It involves the construction of a facility capable of producing 1,500 tons of polysilicon per year, with a total investment of 1.6 billion yuan. Construction began at the end of October 2008, and the main construction work is still in progress. 11. Lu’an High-Purity Silicon Technology Development Co., Ltd.: This company is affiliated with the Shanxi Lu’an Group; it plans to produce 2,500 tons per year of electronic-grade polysilicon and 2,500 tons per year of photovoltaic-grade polysilicon, with a total investment of 5.7 billion yuan. The project had its foundation-laying ceremony in April 2008, and it is currently under construction. The project is located in the Kangzhuang Industrial Park, Tunliu County, Changzhi City. 12. Mudanjiang Polysilicon: A project to produce 3,000 tons of polysilicon per year, funded by 2.5 billion yuan from entities such as Shanghai Industrial Investment Group, Industrial Group, and Building Materials Group. Construction of this project began in 2007, with full operation expected to be achieved in 3 years. 13. Jinhua Smelting Co., Ltd.: This company is planning to build a polysilicon production facility in the Lingnan Industrial Park in Linghai, Jinzhou, with an annual production capacity of 1,000 tons. The total planned investment is 1.15 billion yuan. The first phase of the project began construction in mid-2008 and has not yet been completed; construction of the second phase is expected to start this year. 14. Sangxing Silicon Technology Co., Ltd.: The company has financed the construction of a solar-grade polysilicon production facility with an annual capacity of 2,000 tons; the project is located in the Industrial Park of Liancheng County, Longyan City, Fujian Province, with a total investment of 700 million yuan. The planning and design for this project were completed in the first half of 2008, with civil construction starting in the second half of that year ； It is expected that all civil engineering work will be completed by the end of 2009, enabling a production capacity of 500 tons per year ； Full capacity was achieved in 2010. 15. TBEA Polysilicon and New Energy Joint Project: This project was jointly developed and constructed by TBEA Co., Ltd. and China Dongfang Electric Corporation. It is located in the “500” Industrial Park within the Urumqi High-Tech Industrial Development Zone, and the project will be built in four phases. One phase of this project involves an investment of 1.6 billion yuan; the construction scale is designed to produce 1,500 tons of polysilicon per year. Construction began in April 2008, with completion and operation expected by the end of 2009. 16. Jiaozuo Coal Industry Group Polysilicon: This project plans an annual polysilicon production capacity of 3,000 tons. One phase of this project involves the construction of a polysilicon production line with an annual output of 1,000 tons, requiring an investment of 850 million yuan; completion is expected by early 2010. The project is located in the western industrial cluster area of Jiaozuo City. 17. Yunnan Aisilixin Technology Co., Ltd.: The project is located in the Nanhaizi Industrial Park in Qujing City, Yunnan Province. It involves a polysilicon production facility with an annual capacity of 10,000 tons, and the total investment amounts to over 10 billion yuan. The first phase of this project requires an investment of 2.5 billion yuan, with an annual production capacity of 3,000 tons of polysilicon. Construction on the first phase began in April 2006, and it was planned to reach an annual production capacity of 10,000 tons of polysilicon within 3 years; however, due to the financial crisis, this goal can no longer be achieved. 18. Yunnan Hongshengmeng Industry (Group) Co., Ltd.: The project is located in the Laowo River Valley Industrial Park in Lushui County, Yunnan. The total investment in this project exceeds 1 billion yuan, with a planned annual production capacity of 2,000 tons of polysilicon and 100,000 tons of industrial silicon. The project is constructed in four phases; the first phase involved the construction of 3 industrial silicon electric furnaces, which were completed in 2007 and put into operation in 2008. Phase II of the project has not yet begun. 19. Changning Shengji Silicon Industry Co., Ltd.: Established in 2004, this company is located in Changning County, Baoshan City, Yunnan Province. It was set up with joint investment from the American company Universal Special Metals; the total investment amount was 1.1 billion yuan. The first phase of construction involved building production lines capable of producing 50,000 tons of metallic silicon and 2,000 tons of polysilicon per year, with completion expected in the second half of 2009. The second phase was to be completed by the end of December 2010, so as to achieve an annual production capacity of 100,000 tons of metallic silicon and 5,000 tons of polysilicon. 20. Jinzhou New Century Quartz Glass Co., Ltd.: This company plans to build a production line capable of producing 1,000 tons per year of solar-grade polycrystalline silicon, using the \"physical method\". The first phase of this project, with a capacity of 50 tons per year, was completed in mid-2008; the capacity was later increased to 300 tons, with the ultimate goal being to reach a production capacity of 1,000 tons per year. Planning period, preparation period, and projects with uncertainties: 1. Meishan Beijing Shunda Polysilicon: This project is jointly developed by Beijiu Shunda Xinye Energy Technology, Beijing Taiwantong International, Beijing Jinqi New Technology, and a **branch of Great Wall Asset. With a registered capital of 300 million yuan, it is planned to build a polysilicon production line with an annual capacity of 3,000 tons in the Meishan aluminum industry cluster area. The project will be carried out in two phases; the first phase requires an investment of 980 million yuan to establish a polysilicon production line with an annual capacity of 1,500 tons. This project is still in progress. 2. Meishan Zunmark Photovoltaic Materials Co., Ltd.: Established in October 2006, this company is involved in a polysilicon production project with an annual capacity of 5,000 tons, funded jointly by Green Energy (UK) Investment Co., Ltd. and Chengdu Gaofei Industrial Co., Ltd. The total investment in fixed assets for this project amounts to 1 billion US dollars, including a first-phase project with an annual polysilicon production capacity of 1,500 tons, for which 88 million US dollars were invested ； Phase 2: 3,500 tons per year of polysilicon and 2,000 tons per year of monocrystalline silicon, with an investment of $500 million ； Phase 3: 20 million pieces per year of single-crystal wafers and solar products, with an investment of $412 million. However, the above projects are currently only in the planning stage, and the first phase has not yet been completed. 3. Inner Mongolia Fengwei Silicon Industry Co., Ltd.: This company is part of the Ordos Baoheng Group. The project is located in the Wusutai Economic Development Zone in Alxa League, Inner Mongolia. The total investment in this project amounts to 4 billion yuan, with plans to produce 6,000 tons of solar-grade polysilicon per year. The first phase of the project will enable the production of 1,500 tons of polysilicon per year; currently, the project is still in the preparation stage. 4. Sinosteel Technology Development Co., Ltd.: This company serves as the R&D center of the Sinosteel Group. It planned to invest in a polysilicon production facility with an annual capacity of 15,000 tons in Jiaxiang County, Jining City; construction was supposed to begin at the beginning of 2009, but so far the project has not yet started. 5. Yiyang Polysilicon of Nanxiangtou Holding Group Co., Ltd.: The company’s first-phase project with an annual production capacity of 1,500 tons of polysilicon passed the expert review in Changsha on January 22, 2008. The project is planned to be built in the southern expansion area of Yiyang High-Tech Zone, with the \"modified Siemens process\" being the main production method. The project is still in progress at present, and the main structure of Phase 1 has not yet been constructed. 6. American New Energy Technology Company: In November 2008, this project was built solely by the American New Energy Technology Company, with technical support provided by the New Energy Engineering Technology Research Institute of the China Electronics Engineering Design Institute. The main product produced is solar-grade polysilicon; the polysilicon production project is located in the industrial park of Lixian County, Hebei Province, and an agreement was signed for its development there. The project was signed at a time when the photovoltaic industry was being affected by the global financial crisis. Although the plan called for an annual production of 6,000 tons of polysilicon, with a total investment of over 5.4 billion yuan and construction to take place in three phases, there is no news yet regarding the first phase of the project, which was supposed to start in February 2009 and involved an investment of 660 million yuan to build a polysilicon production line with an annual capacity of 1,000 tons. The author also did not obtain any information on the progress of the project during the interviews conducted. 7. Chengde Zhongquan Mining Company: This company, together with Chinese Americans, is investing funds to establish the Daojing Photovoltaic Polysilicon project. The planned investment amount is 800 million yuan. The project is located in Chengde County; however, no specific data regarding its production scale or construction timeline was available during the interviews. Industry experts speculate that the project is currently still in the planning stage. 8. Shaanxi Hengyuan Coal and Electricity Group Co., Ltd.: Plans to invest in the construction of a polysilicon production line with an annual capacity of 1,500 tons; the total investment amount is 1.7 billion yuan. The project is located in Sunjiacha Town, Shenmu County. The project has been registered and is still in the preliminary preparation stage. 9. Polysilicon in Xinyang Industrial City: A production project with a total investment of 6.3 billion yuan, capable of producing 6,000 tons of high-purity polysilicon per year, has been registered with the Provincial Development and Reform Commission. A joint venture is planned as the investment structure; the investors are currently unknown, and neither the plans nor the location have been finalized. Industry experts estimate that this project will fail. 10. Jiangxi Jingde Semiconductor New Materials Co., Ltd.: The company was established in Jingdezhen in April 2008, mainly focusing on the production of semiconductor materials. The total investment for the polysilicon project is 4.8 billion yuan, with an annual production capacity of 3,000 tons; the construction timeline and site location have not yet been determined. 11. Polysilicon in Zaozhuang, Shandong: The project is located within the Zaozhuang Industrial Zone; it aims to produce 500 tons of solar-grade polysilicon per year. The planned start date is February 1, 2009, with the completion date set for August 30, 2009. However, during the author’s investigations, no information regarding any moves by this company was heard; the investment party and the specific location remain unclear. 12. Suqian Xuli Solar Energy Co., Ltd.: Established on October 25, 2007, the company has a total investment and registered capital of $29.9 million. It was founded entirely by Mauritius Titan Solar Technology Holding Co., Ltd., and is primarily engaged in the production and sales of polysilicon. There are no updates on the progress of this project at present.