[Haichuan Industry News] Thoughts on the Future Development of the Silicon Industry in Xinjiang during the 13th Five-Year Plan Period
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I. Overview of Industrial Development Xinjiang remains a mysterious place for most people in China. Xinjiang has long been the end point of commodity distribution; it can be said that goods arrive right at the destination ； The economic system that Xinjiang has been working to develop over the long term exhibits distinct local characteristics. Its participation in China’s industrial division of labor remains preliminary, unclear, and at a low level; most of the products produced are raw materials, making it a typical raw material hub ； Since the new century, products in their original form have developed rapidly; the energy advantages associated with them have been gradually recognized, and industries that require large amounts of energy have begun to attract attention, with the silicon and aluminum industries being particularly representative. These competitively strong enterprises, industries, and products are primarily driven by the investments made in Xinjiang by entrepreneurs from the eastern and central regions. We consider them pioneers in industrial support for Xinjiang, and here we extend our sincere gratitude to you! Xinjiang’s silicon industry has a short history. Around 2008, a number of enterprises from the mainland took advantage of the hydroelectric resources in the Ili River Valley to initiate the development of this industry. Projects related to polysilicon, industrial silicon, and silicon carbide were established one after another, enabling the industry to develop at a rapid pace and develop distinct characteristics; as a result, a silicon industry cluster that holds considerable influence nationwide was formed. At present, the production capacity of its main products is 1.05 million tons of industrial silicon and 34,000 tons of polysilicon ； The equipment level is high; industrial silicon is mainly produced using smelting furnaces with a capacity of 25,000 kVA and 33,000 kVA ； It boasts advanced technology, including a complete system for the comprehensive utilization of polysilicon by-products with an annual production capacity of over 120,000 tons, large-scale reduction furnace technologies such as those with 48 rods, and automated processing systems for polysilicon products ； The key enterprises are highly capable; among them is Xinjiang Hesheng Silicon Industry, the largest producer of industrial silicon in the country, as well as Xinte Energy Company and Xinjiang Daquan New Energy Company, which rank among the top five polysilicon producers in the nation ； There is also a rising star – Dongfang Hope Company. The economic belt on the northern slope of the Tianshan Mountains is home to a number of enterprises producing industrial silicon, green silicon carbide, and silicon carbide micropowder, as well as one enterprise that manufactures 6-inch silicon carbide crystals for use in semiconductor substrates. These enterprises constitute the landscape of Xinjiang’s silicon industry, and they are all treasures of which Xinjiang is proud.
II. Direction of Industrial Development: Given the development momentum of Xinjiang’s silicon industry, it has become an urgent task to formulate a proper plan for the 13th Five-Year Plan period. At present, the upcoming 13th Five-Year Development Plans for Xinjiang’s electronics and information technology manufacturing industry as well as its photovoltaic industry both identify silicon as one of the key elements, representing industries that will continue to develop steadily over the next five years. In August, the Xinjiang Party Committee and the People’s Government stated that it was necessary to \"promote the development of coal, electricity, aluminum (silicon) industries downstream in order to create industrial chains with international competitiveness.\" This was the first time in Xinjiang’s industrial history that the term \"international competitiveness\" was used, which demonstrates our determination. Over the next 5 years, the autonomous region will strive to expand the \"coal-electricity-silicon\" industry chain downstream. Industrial silicon and polysilicon will be aimed at reaching world-class standards, while ingots and wafers will strive to be at the leading level in China. By incorporating inverters, solar modules, and key materials, the region aims to create a \"Silicon Valley of China,\" develop an industrially competitive supply chain, and turn Xinjiang into an important base for the production and export of photovoltaic products. The scale of the silicon industry is expected to grow at an annual rate of over 30%. A number of high-standard projects will be built in Urumqi, Changji Zhundong, Shihezi, the Ili Valley, Turpan and other areas.
III. Our Vision Generally speaking, Xinjiang’s economic output accounts for a small proportion of the country’s total, and the gap between its level of economic development and that of the provinces and cities in the eastern and central regions is widening. Yet we remain full of hope and continue to work hard. Decades of experience in industrial development have shown that continuing with the old concepts and practices in Xinjiang makes it difficult to adapt to the current new normal. It has become inevitable to build on Xinjiang’s resources, energy, geographical location, and existing foundations, to plan for the long term, to recognize the temporary advantages and disadvantages, to seize opportunities, to take decisive action, and to formulate actionable policies to support the leapfrog development of the industry. We note that a month ago, the State Council issued a document aimed at reducing the costs for enterprises in the real economy, with the goal of effectively cutting costs and improving efficiency over a period of about 3 years. As the most strategic industry in Xinjiang, the silicon industry – I believe that a range of policies related to energy allocation, electricity prices, land, technology, talent, and investment are currently being developed and planned, and these policies will surely be applied to the enterprises that invest in Xinjiang. I sincerely hope that colleagues in the industry both at home and abroad will pay attention to Xinjiang, visit it for business purposes, and contribute significantly to the development of the silicon industry there as well as in China, working together to create a bright future for the core area of the Silk Road Economic Belt.
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