Daqo New Energy’s Q3 2026 revenue rose to $194.2 million from $62.7 million in Q2, but remained below the $244.6 million in Q3 2025
Chinese n-type polysilicon prices improved, supported by anti-involution measures, but high inventories and weak demand persist
Daqo has raised its 2026 polysilicon production guidance to 175,000–185,000 MT even as it considers lower near-term capacity utilization
Daqo New Energy, the leading Chinese polysilicon manufacturer, has reported a sharp sequential increase in Q3 2026 revenue as shipments and average selling prices (ASPs) rebounded. While the company has raised its annual production volume guidance, it remains watchful of high inventories and weak market demand.
The manufacturer reported $194.2 million in revenues for the reporting quarter, more than triple the $62.7 million reported in Q2 2026. The increase was driven by higher sales volumes and the company’s adoption of a market-oriented sales and pricing strategy, but it was still below the $244.6 million reported for Q3 2025 (see Daqo New Energy Improves Q3 2025 Revenues; Narrows Net Loss).
Daqo New Energy CEO Xiang Xu said its polysilicon ASP increased by 2.0% sequentially to $4.12/kg in Q3, lagging the broader market recovery because shipments included orders signed before late July. Meanwhile, Chinese n-type polysilicon market prices recovered to RMB 40/kg to RMB 43/kg by the end of the quarter, up from RMB 30.5/kg to RMB 33.0/kg, which Xu attributes to China’s efforts to curb below-cost sales and excessive competition, referred to as ‘anti-involution’.
However, Xu noted that high inventories and weak near-term demand continued to challenge the market.
Daqo sold 46,910 metric tons (MT) of polysilicon during the quarter, up from 15,190 MT in the previous quarter. With its nameplate capacity utilization rate of around 70%, it exceeded production guidance of 40,000 MT to 45,000 MT, reaching a total production volume of 53,469 MT. It sold 46,910 MT.
It has now raised its full-year 2026 polysilicon production guidance to 175,000 MT to 185,000 MT (previously 160,000 MT to 180,000 MT) even as it considers reducing near-term capacity utilization amid weak demand and elevated industry inventories. Daqo expects to produce 35,000 MT to 45,000 MT in Q4 2026, below the Q3 volumes.
Going forward, Daqo believes the Chinese government’s above-cost pricing rules and energy consumption limits could support polysilicon pricing. It will also phase out older, high-energy consumption capacity, making way for demand to pick up.
Earlier, in August 2026, eight leading Chinese polysilicon manufacturers, including Daqo, signed a self-regulation agreement to stop selling below cost, following pricing compliance guidance from the government (see Eight Chinese Polysilicon Makers Agree To Fair Pricing).
Beyond its core business, Daqo is expanding into AI data center (AIDC) power infrastructure as it attempts to reduce exposure to solar PV cyclicality. The company plans to manufacture energy storage systems (ESS), solid-state transformers (SST), and solid-state circuit breakers. It expects the new manufacturing facility to be completed in H1 2027, with sales beginning in 2027.
“We view AIDC power infrastructure as a structural growth opportunity that complements our core business and has the potential to broaden our earnings base,” said Xu, adding that the company remains optimistic about the solar PV sector and its long-term growth prospects.
