The polysilicon market: production capacity outside China

Consolidation inside China

Industry reporting indicates that major Chinese producers — among them Tongwei, GCL Technology and Daqo — have backed a platform with three billion yuan in registered capital, whose stated aim is to acquire and permanently shut down roughly one third of existing Chinese capacity. Eight leading producers have also signed a joint initiative on unified pricing and the phase-out of outdated capacity.

Tongwei has also announced its intention to fully acquire Qinghai Lihao and its 200,000-ton capacity, described as potentially the sector's first major M&A transaction of 2026. The prevailing direction inside China is therefore contraction rather than expansion.

The opposite direction elsewhere

Non-Chinese capacity is moving the other way. OCI Holdings has announced plans to double annual solar-grade polysilicon output to 70,000 metric tons by 2029. The driver is not demand alone but the provenance requirements some markets now place on supply chains.

The practical result: any existing production capacity outside China — operating, restartable or relocatable — carries significance beyond the material value of its equipment. This is the frame within which an asset such as the Jubail facility is assessed.

What this page does not claim

Takamol does not offer price forecasts, demand estimates, or a valuation of any asset including its own. The context above is drawn from published reporting and attributed to its sources below. Any investment decision requires independent analysis and specialist advisors.