Polysilicon or refined silicon is the raw material behind most of the world’s consumer electronics.Polysilicon is used to make both solar and semiconductor silicon wafers.Silicon wafers are used in making chips which are used by the Intels and Samsungs of the world while Solar Wafers are used in making solar crystalline panels used in generating electricity from the sun.Most of the world’s major solar energy companies used c-Si Technology in making solar panels.Polysilicon is an energy intensive process which requires cheap electricity.The polysilicon is produced mostly in the western countries like Japan,USA and Germany now.However the rise of solar panel producers in Asia has given rise to large volume Asian producers of polysilicon as well.Note Polysilicon production is concentrated in the hands of 8-9 companies unlike solar panel production which is done by hundreds of companies.This is a capital intensive process and requires around 2 years to complete a single plant.Semiconductors require higher purity levels of Polysilicon than the solar industry.The massive increase in demand from the solar industry has led to massive growth in poly production.Here are a list of the main polysilicon companies in the world
Solar Wafer Companies are mainly concentrated in Asia specifically China and Taiwan.Cheap labour,lower land and capital costs as well as presence of major customers has made China the No.1 Solar Wafer Producer in the world.Despite most of the polysilicon being produced in Europe and USA,China leads the way in wafer production.Note semiconductor wafers in contrast are mainly produced in the developed countries like Japan,USA and Germany.The structural forces of the crystalline silicon industry is forcing vertical integration with cell producers making wafers and wafer production companies making cells.However there are a few companies which predominantly concentrate on supply solar wafers to solar cell manufacturers.Here is the list of the main solar wafer producers which have shown stunning growth in the last few years.
China based GCL Poly is the biggest solar wafer producer in the world wresting the crown from LDK Solar in 2010.GCL Poly is now set to grow even bigger in 2011 raising its wafer capacity almost 85% making it No.1 by far.Note solar wafers are made up of polysilicon and used as raw materials for making solar cells which generate electricity from the sun.They are very similar to semiconductor wafers which are used to make the basic building blocks for electronics.GCL Poly has seen a massive rise from 2010 when it started to producer solar wafers.The company’s strategy of setting up plants near its major customers have landed it major deals and lower the cost in the supply chain.
Solar Energy is the fastest growing renewable energy source in the world and has shown tremendous growth in the last 2-3 years.This has been driven by a more than 50% decline in Solar PV costs which continues to decline further.With further increase in energy prices,Solar Power is becoming closer and closer to retail electricity price.Not only is the price declining,solar power is clean energy a most valuable feature in these days of accelerating climate change.Solar Energy has already reached grid parity in places like Italy and Hawaii and will do so in more places in the coming 2-3 years.The industry is a dynamic one and the list of top solar companies can change quickly.Rapid Technology Change and Fast Declining Costs have pushed out most of the Top 10 companies of 5 years ago and brought in new ones mainly Chinese.Here is a list of the Top Solar Panel Producers in the World.
Polysilicon used to be Big in the Supply Constrained Days of 2007 and 2008.This commodity which is generally producers for $30/kg used to be sold at $400/kg by Polysilicon Producers as the Exponential Demand Growth in the Crystalline Silicon Solar Cell Industry pushed the prices to astronomical levels.With Polysilicon being the only constraining link in the Supply Chain,Downstream Solar Companies with access to Cheap Polysilicon Contracts used to be the Kings of the Industry.Polysilicon Producers like MEMC,Wacker etc. managed to sign many sweetheart deals on those days with 10-15% prepayments and other favorable conditions loaded in the favor of the upstream suppliers.
Note HK listed Chinese solar firms like GCL and Comtec solar have performed much better than their NY listed Chinese peers.The HK market has also outperformed the US markets which are presently suffering from Double Dip Scares.If Trony manages to list successfully in Hong Kong it will give an impetus for other Chinese Green Companies like Daqo and others to list in HK as well.With continued apathy towards Chinese solar stocks,it is not inconceivable that you might see NY listed firms apply for a dual listing in HK as well.