NYSE listed and China headquartered Daqo New Energy has added to its list of long term polysilicon supply deals it has been securing of late, this time for 41,000 MT with leading Chinese wafer supplier Zhonghuan Semiconductor. (Photo Credit: Daqo New Energy Corp.)
- Daqo New Energy has signed a polysilicon supply agreement with Zhonghuan Semiconductor
- The deal is for 41,000 MT high purity mono grade polysilicon to be supplied between 2021 and 2023
- Prices will be negotiated by the parties on a monthly basis, but Zhonghuan Semiconductor will make an advance payment to the Chinese company
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Daqo New Energy has announced landing itself a plum long-term polysilicon supply order for 41,000 MT over a 3-year period. The long term order has been placed by Chinese monocrystalline solar wafer producer Zhonghuan Semiconductor, one of Chinese leading wafer manufacturers, which is the key supplier of the new large-size 210 mm format.
Under the agreement signed, Daqo will supply Zhonghuan with high purity mono grade polysilicon between 2021 and 2023 with actual prices to be negotiated by both parties on a monthly basis, though the buyer will make an advance payment to the Chinese polysilicon supplier which was not shared.
For Daqo this adds to the list of long term contracts it has signed of late with a number of companies, including with Wuxi Shangji Automation, JinkoSolar and Trina Solar among others (see Trina Solar Secures Long-Term Polysilicon Supply).
Roth Capital Partners’ analyst Philip Shen said, “We believe DQ could be 100% booked for 2021 and ~80% booked for 2022, while bookings for 2023/2024 are healthy as well. We continue to see potential for capacity expansion especially outside Xinjiang in Yunnan, Sichuan, or potentially outside China.”
Daqo is to announce its financial results for 2020 on March 9, 2021 when it is expected to share capacity expansion plans.