TCL and GCL to Jointly Develop Production Capacity for Granular Silicon and Electronics-Grade Polysilicon – EQ Mag Pro
TCL Technology announced on July 6 that it and GCL Group have commenced their joint projects for granular silicon and electronics-grade polysilicon. TCL and GCL signed a cooperative framework agreement earlier this April. This framework agreement has served as the foundation of several other deals between the subsidiaries of both parties.
TCL is an electronics manufacturer, whereas GCL is an integrated manufacturer for PV products. Both are based in China. The announcement was first picked up by other Chinese news outlets.
According to the official statement that was released on July 6, TCL’s subsidiary Tianjin Silica Material Technology and Jiangsu Zhongneng Polysilicon Technology Development will follow the terms of their investment cooperation agreement and form a joint venture called “Inner Mongolia Xinhuan”. This new entity will set up 100,000 metric tons per year of production capacity for granular silicon and silicon-based materials. It will also invest in projects related to the development of downstream applications for silicon-based materials. The registered capital of the joint venture is set around CNY 4.5 billion. Tianjin Silica will account for CNY 1.8 billion of that amount and hold a 40% stake in the entity. Jiangsu Zhongneng is a subsidiary of GCL-Poly, a major Chinese polysilicon supplier under the control of GCL Group.
Additionally, Tianjin Silica, Jiangsu Xinhua Semiconductor Material Technology, and Inner Mongolia Xinhua Semiconductor Material Technology together have sealed a capital increase and project development agreement. Under this agreement, Tianjin Silica and Jiangsu Xinhua will respectively invest CNY 720 million and CNY 980 million in Inner Mongolia Xinhua. With this injection, the registered capital of Inner Mongolia Xinhua will reach around CNY 1.8 billion. In exchange, Tianjin Silica will obtain a 40% stake in the investment target. The second part of this agreement is the joint development of 10,000 metric tons per year of production capacity for electronics-grade polysilicon. Both Jiangsu Xinhua and Inner Mongolia Xinhua are under GCL Group.
In its statement, TCL said the new joint projects with GCL will strengthen its presence in the markets for the key upstream materials used in PV products and semiconductor chips. Moreover, adding new production capacity for granular silicon and electronics-grade polysilicon will contribute to cost reductions across the supply chain and improve the stability of the supply chain as well. TCL also said that by collaborating with GCL, it will be able to pursue the strategy of becoming a major player in both the market for PV products and the market for semiconductor materials. TCL actually has the ambition of becoming a leading player that will have overtaken many established competitors in the future.
Source: energytrend
