Why the Chinese companies are leaders in poly-silicon market?
“The future of innovation has to include not only the technology, but economic viability” says the CEO of Boing Mr. Denis Mulinberg..This is what exactly fits in to the geo politics of a decade between the Chinese poly silicon manufacturers and the US Poly-silicon. A decade back the companies such as Waker from US was the market leader in the Poly-silicon manufacturing and was having the monopoly market. The major cost compenents of Polysilicon manufacturing include the energy cost, labour cost and technology costs..The Chinese government not only imposed the anti dumping duty on the US polysilicon, but also provided the low cost electricity, state funding, and technological support to its Polysilicon Industry, and today, China governs over 80% of the global Polysilicon market. Today, Tongwei, Xinte, Daquo, are the Chinese companies who lead the global poly silicon market.
The electricity cost in China is one of the lowest for the industries, as the polysilicon manufacturing requires the melting and casting of Silicon and highly energy intensive process, it is on advantage to the Chinese players. Through low cost manpower, economy, and lower energy cost, over the decade the China governs the market in terms of volume as well as in technology. China is the biggest supplier not only for the poly silicon ingots, but also for wafer, cells, and modules with the global command of complete supply chain..
It is important for Indian companies to develop the domestic supply chain of Poly silicon, wafer, cell and modules.. This requires significant effort in terms of GOI support to provide the similar support which China has extended to its industries..