China’s solar giants plan to create a multibillion-yuan fund to buy out and shut down over 1 million tonnes of excess polysilicon production capacity, aiming to address the country’s severe supply glut. The move supports President Xi Jinping’s efforts to curb destructive price wars and industrial overcapacity.
China currently produces around 3.23 million tonnes of polysilicon, more than twice its projected demand for 2025. This oversupply has caused industry distress, with 40 solar companies delisting or going bankrupt since last year. Major producers like Tongwei have also been affected, cutting 87,000 jobs.
The proposed fund could serve as a market-oriented tool to remove excess capacity, potentially easing trade tensions with the US and Europe. However, the plan faces significant obstacles, including resistance from local governments and collaboration challenges from banks and state-backed enterprises. These entities are wary of an industry plagued by heavy losses.
Source: https://www.electronicsforyou.biz/industry-buzz/chinese-solar-giants-consider-7-billion-fund-to-curb-polysilicon-glut