Tongwei's acquisition of Lihao equity was unconditionally approved

[SMM PV Express] It is understood that on September 24, 2026, the State Administration for Market Regulation issued its review decision, unconditionally approving the acquisition of equity in Qinghai Lihao Qingneng Co., Ltd. by Tongwei Co., Ltd. in accordance with the law. The administration stated that although the combined share of the parties in the global and Chinese solar-grade polysilicon markets is relatively high, the current solar-grade polysilicon market has ample capacity and numerous competitors, and the post-merger entity will still face effective competitive constraints. The transaction will not have the effect of excluding or restricting competition in the relevant market.

According to SMM data, before the acquisition, Tongwei had an annual capacity of approximately 830,000 mt, while Lihao had an annual capacity of 150,000 mt. If the acquisition is completed, its annual capacity will reach 980,000 mt, accounting for about 30% of total market capacity.

The current polysilicon market is plagued by severe involution, with price "loss of control" and capacity mismatch reinforcing each other. In H1 2026, polysilicon prices once fell to around 30 yuan/kg, and nearly all enterprises faced cash losses. Some believe this move will, to a certain extent, promote enterprises to optimize resource allocation through market-oriented mergers, acquisitions, and restructuring, and to escape low-level, homogeneous "involution-style" competition.