Industry latitude and longitude: China's polysilicon industry will usher in a golden period of development

Recently, the completion and operation of Luoyang Zhongyang Hi-Tech Co., Ltd.'s 300-ton-per-year polysilicon project in Henan Province marks a significant breakthrough in China's efforts to overcome foreign technological monopolies that had long restricted its polysilicon industry. For years, advanced production technologies were dominated by international players, but this new project demonstrates China’s growing capability to develop its own high-purity silicon materials, signaling a shift in the industry's landscape. Not long ago, the China Electronic Materials Industry Association held a seminar in Beijing focusing on the "Eleventh Five-Year" technology development strategy for polysilicon materials. Experts at the event highlighted that global demand for polysilicon is expected to reach 70,000 tons annually by 2009. During the "Eleventh Five-Year" period (2006–2010), China is anticipated to experience a golden era for the rapid growth of its polysilicon industry. Silicon is the foundational material for the semiconductor industry, which accounts for over 95% of all semiconductor materials. As China becomes a major player in the global electronics market, its semiconductor sector has seen substantial growth. The demand for polysilicon is rising rapidly, especially in integrated circuits and solar cells. In 2005, the integrated circuit industry required around 1,000 tons of electronic-grade polysilicon, while solar cell production needed approximately 1,400 tons. By 2010, these figures are projected to increase to 2,000 tons for electronic-grade and 4,200 tons for photovoltaic-grade polysilicon. To meet this growing demand, experts emphasize the urgent need to build 2–3 thousand-ton polysilicon production lines within the next three to five years. Currently, China's production capacity is only about 100 tons annually, with outdated processes and limited scale, leading to a heavy reliance on imports—over 95% of the supply comes from abroad. This dependency has led to soaring prices, creating bottlenecks that hinder the development of China’s information and photovoltaic industries. The successful completion of the 300-ton project by Luoyang China Silicon Hi-Tech Co., Ltd. represents a crucial step toward achieving the next phase: a 1,000-ton polysilicon project. This initiative not only lays a solid foundation for future expansion but also strengthens the company's core competitiveness through independent innovation. Globally, foreign manufacturers are actively researching new processes, equipment, and technologies to enhance polysilicon production. These advancements suggest that the industry is on the verge of a technological leap. However, domestic companies cannot rely on foreign technology transfers or joint ventures. Instead, they must take the initiative to establish their own R&D centers and develop advanced, indigenous production technologies to break free from foreign control. To accelerate the development of China’s polysilicon industry, government support is essential. Preferential policies should be implemented to help domestic enterprises achieve cost parity with foreign competitors. The state must invest more in research, development, and infrastructure projects to strengthen the industry's technological base. Industry leaders have called on relevant authorities to provide strong support in areas such as taxation, funding, talent recruitment, and equipment procurement. This will help Chinese companies overcome foreign technological blockades and ensure the sustainable growth of key sectors like electronics, solar energy, and national information security. Experts believe that the conditions for the development of China’s polysilicon industry are now in place. With favorable market opportunities and a mature development environment, it is time for domestic companies and research institutions to act quickly. Establishing independent R&D centers, participating in global competition, and building a robust, self-reliant polysilicon production system will be vital for long-term success. The "Eleventh Five-Year" period presents a unique chance to shape the future of China’s high-tech industry.

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