Tongwei signs US$ 7.6 bn silicon supply contract with wafer maker Qinghai Gaojing Solar

Jun 22, 2022 01:37 PM ET
  • Tongwei has actually announced that its subsidiaries have authorized a RMB50.9 billion (US$ 7.58 billion) silicon material sales contract for 216,100 tons with Qinghai Gaojing Solar Energy Technology Co., Ltd
Tongwei signs US$ 7.6 bn silicon supply contract with wafer maker Qinghai Gaojing Solar
Image: Tongwei

The statement on 17 June said that from 2022 to 2026, Qinghai Gaojing will certainly buy no less than 216,100 lots of silicon from Tongwei's subsidiaries. Buying details will be negotiated monthly and also the complete amount of agreement trading volume will certainly undergo the final transaction amount.

Based upon the ordinary purchase rate of mono thick poly revealed by Silicon Branch of China Non-ferrous Metals Industry Association on 15 June, the total sales volume is estimated to be greater than RMB50.9 billion (US$ 7.58 billion).

Tongwei said the signing of the contract helps to keep sales of its polysilicon items, which remains in line with the company's future business strategy and has a positive influence on the company's service efficiency.

The agreement volume overshadows Tongwei's previous sales numbers. In the past 3 years (2019-2021), Tongwei's annual profits was RMB37.555 billion (US$ 5.59 billion), RMB44.2 billion (US$ 6.58 billion) and RMB63.491 billion (US$ 9.45 billion), specifically. Significance, the estimated contract quantity of RMB50.9 billion (US$ 7.58 billion) has exceeded the business's total earnings for both 2019 and also 2020, and is close to its 2021 profits number.

GaoJing Solar is among the fastest growing new gamers in the silicon wafer sector in the past two years. The business was co-founded by a senior technical group in the industry as well as Huafa Team, a leading state-owned firm in Zhuhai, along with IDG Capital, a popular investment organization.

With capital support from all sides, Gaojing Solar Energy has quickly increased and also gotten to complete capacity in less than 3 years given that its founding in 2020. The very first and also 2nd phase of its 50GW silicon chip project has reached complete capacity in June this year, ahead of the schedule, as well as it has actually become one of the leading 5 gamers in the industry with an existing capacity of 30GW.

Gaojing will additionally construct 50GW of ingot pulling and 30GW of wafer cutting projects in Yibin, Sichuan district, with an overall financial investment of RMB22 billion (US$ 3.28 billion). The building and construction will be carried out in 3 phases.

This suggests Gaojing will overtake LONGi as well as Zhonghuan, with a solar wafer capacity of 80GW in total as quickly as the Yibin website is completed.

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