Tongwei Places 1 Billion Wafer Order With LONGi

Tongwei Increases Wafer Requirement For 2021 By 1 Billion; Adjusts Supply Contract With LONGi For 2021 To Increase To 2.6 Billion Wafers
09:13 PM (Beijing Time) - 15. September 2020
Presentation1

LONGi Green Energy has announced Tongwei’s adjustment to the wafer supply contract between the 2 companies. In 2021, LONGi now needs to supply Tongwei 2.6 billion wafers instead of 1.6 billion as previously announced. (Photo Credit: LONGi Green Energy Technology Co., Ltd.)

Key Takeaways

  • Tongwei has adjusted its wafer supply order with LONGi increasing it by 1 billion
  • In 2021, the company would need 2.6 billion wafers instead of the previous order for 1.6 billion
  • Order value of 1.4 billion in 2020 and 1.8 billion in 2022 remains unchanged

LONGi Green Energy Technology and polysilicon/solar cell manufacturer Tongwei Solar (Chengdu) Co., Ltd. have adjusted their wafer supply contract by 1 billion wafers taking the total supply from LONGi to Tongwei for the year 2021 to 2.6 billion.

Previously, Tongwei had placed an order with LONGi to supply 1.4 billion monocrystalline silicon wafers in 2020, 1.6 billion in 2021 and another 1.8 billion in 2022. Now, the 2 parties have agreed that between January 1, 2021 to December 31, 2021, LONGi will need to supply Tongwei a total of 2.6 billion wafers, LONGi announced in a stock exchange .

Financial terms of the agreement were not shared but LONGi confirmed it will receive advance payment from Tongwei.

At the end of June 2020, Tongwei said its total operational annual solar cell production capacity reached 20 GW and by the end of 2021 it wants to expand it to 40 GW (see Tongwei: H1/2020 Net Income Down, Operating Income Up). As for LONGi, its aggregate monocrystalline silicon wafer production capacity reached 55 GW as on June 30, 2020 (see LONGi’s H1/2020 Net Profit Improved Over 104.83%).

Earlier this year in February 2020, Tongwei shared its solar cell production capacity expansion plans to have 60 GW to 80 GW cumulatively by 2022 and eventually raise it to between 80 GW to 100 GW by 2023 (see Tongwei Targets Up To 100 GW Cell Capacity).

Back in June 2019, both the companies announced a strategic cooperation agreement to acquire 30% stake in each other’s manufacturing facilities and pledged to explore further cooperation (see Strategic Tie-Up Between LONGi & Tongwei).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani