China Accelerates Polycrystalline Silicon Production

On February 17th, 2007 the 1 260 t/a polycrystalline silicon
project conducted successfully wet commissioning in Sichuan
Xinguang Silicon Sci-Tech Co., Ltd. (Xinguang Silicon) located
in Leshan, Sichuan province of southwestern China. Qualified
products were manufactured on February 26th, 2007. According to
the test made the by Xinguang Silicon, the products have reached
China's polycrystalline silicon standard for electric use, and
can satisfy the technology requirement for solar-grade silicon
material. With a registered capital of RMB308.5 million,
Xinguang Silicon is jointly invested by five companies, among
which Sichuan Provincial Investment Group Co., Ltd. and Baoding
Tianwei Baobian Electric Co., Ltd. respectively hold 38.9% and
35.66% equity.
   This 1 260 t/a polycrystalline silicon production line has
a budget investment of RMB1.29 billion and adopts the renovated
Siemens Technology. If it is fully operated, the sales revenue
of Xinguang Silicon is expected to be increased by RMB600 million
per year. It is released by the general manager of Xinguang
Silicon, the output of Xinguang Silicon certainly can reach 500
tons in 2007.
   There are many other polycrystalline silicon projects under
construction or under plans in order to ease the tight energy
resources. Polycrystalline silicon is not only an indispensable
raw material to make chips but also a basic material for solar
cell to relieve energy crisis.
   The first-phase polycrystalline silicon project of Yunnan
Aixin Silicon Sci-Tech Co., Ltd., which is also located in south
China, has an investment of RMB2.5 billion and a design capacity
of 3 thousand t/a. The capacity of the project will reach 10
thousand t/a within 3 years. (CCR2006, No. 12)
   Construction on the second-phase 3 thousand t/a project in
Luoyang China Silicon High-Tech Co., Ltd. was already started
in December 2005. Jiangsu Sunshine Co., Ltd. (SH: 600220) has
signed a letter of intent with Ningxia Orient Non-ferrous Metals
Group and Ningxia Yinglite Power Group on the construction of
a polycrystalline silicon project, which plans a capacity of 4
thousand t/a and a total investment of RMB3.5 billion. CSG
Technology Holding Co., Ltd. (SZ: 000012) has also signed a
contract with Hubei Yichang Municipal Government on the
construction of a 4.5 thousand t/a high-purity polycrystalline
silicon project. Emei Semiconductor Material Plant also decided
to construct a 500 t/a polycrystalline silicon project. Those
projects will mostly be completed and put on stream in the next
3 to 5 years.