Sometimes the terrain of LONGi Inexperienced Vitality, which has dominated the marketplace for the previous six years, the photo voltaic wafer manufacturing area in China is changing into more and more aggressive, with different firms eager to capitalise on the excessive demand for silicon wafers.
TCL Zhonghuan is now competing “neck-and-neck” with LONGi, whereas Shangji Automation, Shuangliang Eco-energy and Gokin Photo voltaic, in addition to others, are speeding to determine themselves available in the market by investing in new know-how and attracting capital and purchasers.
Wafer firms making large initiatives
On the night of 19 October, main PV silicon wafer provider TCL Zhonghuan provider launched its Q3 report, which reveals that the corporate achieved an working income of about RMB49.85 billion (US$6.82 billion) within the first three quarters of this yr, with a year-on-year progress of 71.35%. Web revenue attributable to shareholders of the listed firm was about RMB5.01 billion (US$690 million), up by 80.68% year-on-year.
TCL Zhonghuan stated that it was persevering with to advertise technological innovation and manufacturing reforms, accelerating the method of releasing superior manufacturing capability in addition to optimising and upgrading product buildings. The continued value discount and elevated effectivity facilitated substantial efficiency progress, it famous.
A number of silicon wafer firms reported good efficiency
LONGi Inexperienced Vitality disclosed its foremost working information for January to September 2022, which reveals that it was anticipated to realize an working income of RMB86.4 billion – RMB87.4 billion (US$11,82 billion – US$11.96 billion), a year-on-year progress of 54% to 56%. Web revenue attributable to the shareholders of the listed firm is projected to be RMB10.6 billion – RMB11.2 billion (US$1.45 billion – US$1.53 billion), a rise of 40%-48% year-on-year.
LONGi stated that it actively grasps market alternatives and adopts a versatile enterprise technique to deal with modifications. Through the reporting interval, the corporate’s exterior gross sales of silicon wafers and modules elevated year-on-year, whereas funding earnings and alternate earnings elevated considerably, facilitating a big progress of working income.
| Identify | Income (RMB100 million) | YoY Progress | Web Revenue (RMB100 million) | YoY Progress |
| LONGi Inexperienced Vitality | 864-874 | 54-56% | 106-112 | 40-48% |
| TCL Zhonghuan | 498.45 | 71.35% | 50.01 | 80.68% |
| Shangji Automation | 174.86 | 130.49% | 28.31 | 101.43% |
| Shuangliang Eco-energy | 87.45 | 285.7% | 8.3 | 368.80% |
On 9 October, silicon wafer “upstart” Shangji Automation introduced that it achieved an working income of RMB17.486 billion (US$2.39 billion) for the primary three quarters of the yr, a year-on-year progress of 130.49%. Web revenue attributable to shareholders of the listed firm was RMB2.831 billion (US$2.83 billion), up by 101.43% year-on-year. It’s estimated that the web revenue for Q3 was RMB1.255 billion (US$170 million), up by 36% from the earlier quarter, a document excessive for a single quarter.
Shuangliang Eco-energy achieved a complete working income of RMB8.75 billion (US$1.2 billion) within the first three quarters, up by 285.7% year-on-year. Web revenue attributable to the guardian firm reached RMB830 million (US$113.56 million), a year-on-year enhance of 368.8%. Each performances hit document highs for the corporate.
The corporate’s Q3 quarterly efficiency was additionally important. It achieved a income of RMB4.449 billion (US$610 million), up by 337% year-on-year. Web revenue attributable to its guardian reached RMB477 million (US$65.3 million), a year-on-year enhance of 539.28%. Shuangliang Eco-energy stated the efficiency progress was primarily attributed to the gross sales increase of polysilicon tools and mono silicon wafers pushed by its “double carbon” coverage.
From every firm’s efficiency, we will see that LONGi Inexperienced Vitality secured its main place by a outstanding benefit and a comparatively secure progress fee. TCL Zhonghuan got here in second with a big enhance. The opposite two newly emerged stars additionally achieved record-high progress with outstanding earnings regardless of comparatively decrease volumes.
Greedy alternatives in bigger n-type modules
At present, a lot of the world’s silicon wafer manufacturing capability is situated in China, the place all the prime 10 producers are primarily based. Based on the US Division for Vitality, 97% of worldwide wafer capability is held by China.
There are primarily two forms of enterprise fashions for PV silicon wafer enterprises: the “vertically built-in” mannequin adopted by LONGi Inexperienced Vitality, TCL Zhonghuan, JinkoSolar and JA Expertise, whereas Shangji Automation, Shuangliang Eco-energy, Jiangsu Meike and JingYuntong undertake the “unbiased and specialised” mannequin.
By way of competitors sample, China’s mono silicon market is extremely concentrated with the highest 5 firms occupying the overwhelming majority of the market, and the entire market share is near 90%. LONGi Inexperienced Vitality and TCL Zhonghuan ranked first and second respectively, accounting for greater than 50% of the market, forming a “duopoly” state of affairs.
In the meantime, new wafer gamers have emerged prior to now two years, with the likes of Shuangliang Eco-energy, Shangji Automation, Gokin Solara and Beijing JYT changing into prime performers.
Since 2019, Shangji Automation had remodeled itself from a number one provider of wafer slicing machines right into a silicon wafer provider. By the tip of 2021, the revenue scale of its silicon wafer enterprise ranked third on the planet, solely beneath LONGi and TCL Zhonghuan. By the primary half of 2022, the corporate’s mono silicon enterprise accounted for 97.28%, with 30GW of ingot pulling capability and 20GW of wafer slicing capability. Within the first half of 2022, its mono silicon shipments reached 15GW.
In June and August this yr, Shangji Automation established a 40GW mono silicon ingot pulling undertaking and 25GW mono silicon wafer slicing undertaking in Baotou and Xuzhou, respectively, aiming for 70GW ingot pulling and 45GW wafer slicing capability. At present, the corporate’s 50GW wafer capability is suitable with manufacturing of all sizes together with 210mm.
Based on Shuangliang Eco-energy’s mono silicon wafer enterprise planning, it’s anticipated to have a manufacturing capability of greater than 40GW by the tip of 2022 with the development of assorted initiatives. Gokin Photo voltaic stated that its deliberate silicon wafer capability was solely second to that of LONGi and TCL Zhonghuan, because it takes intention at third place available in the market.
“It’s anticipated that the market share of large-size silicon wafers will attain 75% and 95% respectively by the tip of 2022 and 2025.”
China Photovoltaic Trade Affiliation
The above talked about newcomers are all benefiting from the market demand for large-size silicon wafers, which at the moment are present process a fast creating interval. Based on China Photovoltaic Trade Affiliation (CPIA), the market share of 182mm and 210mm wafers has grown quickly from 4.5% in 2020 to 45% in 2021. It’s anticipated that the market share of large-size silicon wafers will attain 75% and 95% respectively by the tip of 2022 and 2025.
Then again, at present the PV trade is remodeling from p-type to n-type know-how, creating one more alternative. As increasingly massive vegetation corresponding to these of Jinko Photo voltaic, Risen Vitality, Trina Photo voltaic, JA Photo voltaic, DAS Photo voltaic and Jolywood broaden their manufacturing of n-type merchandise, there will likely be extra massive n-type buy orders.
Nonetheless, PV Tech’s market analysis famous that the silicon wafer phase nonetheless has room for improvement. Mushy energy in know-how must be given significance along with capability growth as it’s key to greedy these alternatives. At current, lowering manufacturing prices and bettering product high quality are the principle path of technological progress within the trade, and in addition a key issue for silicon wafer firms to get forward within the competitors.
For mono silicon wafers, value discount is especially achieved by bettering the yield of mono silicon, lowering the loss throughout wafer slicing and rising the yield per unit. But the manufacturing of low value and top quality mono silicon wafers has excessive technological necessities to be realised via constant tools transformation and process optimisation, which is a take a look at for the R&D functionality of wafer firms.
If the late comers fail to determine a sound manufacturing system and associated requirements in a brief time period, they are going to be at a fantastic value drawback and face the chance of being eradicated from the market.
