Tongwei China, the world's largest silicon material and battery manufacturer, announced that it will invest 28 billion yuan (RMB and S $ 5.186 billion) to expand industrial silicon, which is an inverse investment in China's photovoltaic industry's overcapacity.

Since 2023, China's solar capacity has accelerated, but the demand is insufficient, and the profit of manufacturers has continued to decline.Experts and industry interviewees believe that in the case of insufficient demand overseas and overcapacity in China, China's photovoltaic industry will enter the integrated stage. Large enterprises will be forced to close through the expansion of production and consolidation of market share.

Tongwei Co., Ltd. announced on Monday (December 25) that the company will invest about 28 billion yuan in the construction of a green substrate integrated project in the Inner Mongolia's Inner Mongolia's Inner Mongolia's Inner Mongolia.The announcement shows that the first phase of the project plans to build 200,000 tons of industrial silicon and 200,000 tons of high -pure crystalline silicon projects. It is expected to be completed and put into operation by the end of December 2025, and the second phase will be determined by the market.

Silicon material is a raw material for photovoltaic components. The expansion of Tongwei as a leader has attracted industry attention.

The unknown operators revealed to the Lianhe Zaobao that the giants expand production at the bottom of the cycle can consolidate market share. However, the current backlog of inventory and new demand are slow, and expansion is also "gambling."He said that the current orders are insufficient, especially overseas orders have declined, and the operating rate of many component factories is less than 50%, and many operators are pessimistic about the new year.

The

Economic Observer also pointed out that since November, due to insufficient orders, some photovoltaic factories have begun layoffs or unpaid leave.

Analysis: China's photovoltaic industry will clear up a group of enterprises

The global photovoltaic industry chain is highly concentrated in China.Since 2020, with the support of European energy tensions on global carbon neutralization and the Russian and Ukraine War, with the support of local governments and capital, Chinese manufacturers have accelerated their expansion.Caixin Weekly said that the current Chinese photovoltaic supply has been pushed to the pinnacle of 1000GW, and the global demand side is not half of the number.

The overcapacity has led to the lower price of Chinese photovoltaic products and the thinner profits of manufacturers.According to data from the Ministry of Industry and Information Technology of China, the prices of polysilicon and components in the second half of the year have decreased by 60%and 40%.The Ministry of Industry and Information Technology also said that the export of some photovoltaic products slowed down, of which component exports decreased by 4.6%year -on -year.

Li Zhenguo, the founder of industry giant Longji Green Energy, predicts that in the next two to three years, more than half of China's photovoltaic manufacturers may be forced to withdraw from the market.

Lin Boqiang, Dean of the China Energy Policy Research Institute of Xiamen University, analyzed in an interview with this newspaper that the current excess photovoltaic capacity in China is "node" and the industry will enter the elimination period, but the survival companies still have space at home and abroad.It's big.He said that the cost advantage of Chinese photovoltaic components is difficult to shake. To achieve carbon neutrality in other countries, it will definitely be with China's industrial link.