Tongwei Captures Another Huge Polysilicon Order That Totals 161,100MT in Procurement Quantity – EQ Mag Pro
Chinese integrated PV product manufacturer Tongwei announced on June 22 that its five subsidiaries together have signed a long-term supply agreement with Yunnan Yuze, a unit of Yuze Semiconductor. Under the agreement, Tongwei’s subsidiaries will be supplying polysilicon to Yunnan Yuze over the next several years.
The subsidiaries that are involved in this deal are Sichuan Yongxiang Polysilicon, Sichuan Yongxiang New Energy, Inner Mongolia Tongwei High-Purity Crystalline Silicon, Yunnan Tongwei High-Purity Crystalline Silicon, and Sichuan Yongxiang Energy Technology.
Between this year and 2026, Yunnan Yuze will procure a total of 161,100MT of polysilicon products from Tongwei’s subsidiaries. Prices will be negotiated on a monthly basis, and the value of the entire contract will be determined by the final transaction amount. Yunnan Yuze is a supplier for PV wafers, PV cells, and semiconductor materials. It is reportedly using granular silicon to manufacture N-type wafers.
Chinese news platform Yicai Global reported that just about a week ago from the inking of this deal with Yuze, Tongwei sealed another long-term supply agreement with Gokin Solar. Within a span of four years, Gokin will procure 216,100MT of polysilicon products from Tongwei for an estimated RMB 50.9 billion.
This latest long-term supply contract is typical in the polysilicon market. According to Silicon China, a branch of China Nonferrous Metal Industry Association, the average transaction price of monocrystalline dense material in the Chinese market came to RMB 270,400 per MT (including tax) on June 22. Using this price as the basis for calculation, the contract between Tongwei and Yuze is worth around RMB 38.5 billion (excluding tax). This estimation does not constitute a performance commitment since other factors such as future fluctuations in polysilicon price have yet to be taken into account.
