Zhonghuan Semiconductor Raised its Quotation for Monocrystalline Silicon Wafers in August

SHANGHAI, Aug 11 (SMM) - Zhonghuan Semiconductor (2129) announced on August 11 its quotation for monocrystalline silicon wafers in August. The latest offer of M6 wafer (e.g., 170μm) rose 0.44 yuan/piece to 4.98 yuan/piece, an increase of 9.69%. G12 and G1 wafers (e.g., 170μm) rose 0.44 yuan/piece, 0.26 yuan/piece respectively to 7.97 yuan/piece and 4.88 yuan/piece, an increase of 5.84% and 5.63%.

In the first half of the year, silicon prices continued to rise, driving up the performance of Zhonghuan Semiconductor. The company's recently disclosed earnings report shows that in the first half of this year, its operating income was 17.644 billion yuan, up 104.12% year-on-year; net profit attributable to shareholders of listed companies was 1.480 billion yuan, up 174.9% year-on-year, in line with the previous performance forecast.

Silicon prices have been rising since the beginning of this year, with SMM 521# silicon (East China) spot average price reported at 17,800 yuan/mt on 11 August. And many silicon products have surged by more than 20% year-to-date.

Currently, demand for silicon wafers are greatly driven by the rapid development of the photovoltaic industry. Hence, Zhonghuan Semiconductor is now gradually expanding production capacity as planned. As of today, the company's PV wafer production capacity is 70GW, of which about 40GW is for 210 wafers. It is expected that by the end of 2021, the company’s wafer production capacity will reach 85GW, with large-size products’ capacity accounting for nearly 60% of the total amount. In addition, the company's 210 wafer’s penetration rate has jumped from 6% at the beginning of the year to 15%, taking up over 90% of the 210 wafers market. With the twin engines from prices and demand, Zhonghuan Semiconductor is expected to see a further rise in performance.