Committed to Breaking Free from "Cut-Throat" Competition! Tongwei Co., Ltd. and Daqo New Energy Jointly Announce Production Cuts

On the evening of December 24, Tongwei Co., Ltd. and Daqo New Energy both announced plans to implement orderly production cuts and capacity control.

Tongwei's announcement stated that its subsidiary, Sichuan Yongxiang Co., Ltd. (hereinafter referred to as "Yongxiang Co."), has a high-purity polysilicon capacity exceeding 900,000 mt, distributed across Sichuan, Yunnan, and Inner Mongolia. The company holds significant competitive advantages in scale, cost, technology, and market, maintaining the world's leading market share for consecutive years.

Currently, due to the dry season in south-west China during winter and the resulting increase in electricity prices (up MoM), coupled with the PV industry's overall market conditions remaining in a bottom adjustment phase, Yongxiang Co. actively responds to the spirit of the Central Economic Work Conference. It aims to break "cut-throat competition" and promote the long-term healthy development of the PV industry. Yongxiang Co. has gradually arranged for its four high-purity polysilicon production companies—Yunnan Tongwei High-Purity Silicon Co., Ltd., Sichuan Yongxiang Polysilicon Co., Ltd., Sichuan Yongxiang New Energy Co., Ltd., and Sichuan Yongxiang Energy Technology Co., Ltd.—to carry out technological transformation and maintenance work in accordance with the company's overall production and operation plan. This includes phased and orderly production cuts and capacity control, with specific resumption plans to be determined based on changes in electricity prices at project sites and market conditions. These technological transformations, maintenance, and production cuts are expected to help reduce operating losses in the high-purity polysilicon business under the current market environment and positively impact the company's overall production, operations, and profitability.

During the suspension for maintenance, the company will conduct comprehensive and systematic inspections and maintenance of production equipment at the affected production sites, implement partial technological upgrades, and organize technical training for employees at the relevant production sites. This is to continuously maintain and enhance the company's competitive edge in high-purity polysilicon projects within the industry.

Another polysilicon industry leader, Daqo New Energy, also announced in the evening that the company currently operates two production sites in Shihezi, Xinjiang, and Baotou, Inner Mongolia, with an annual capacity of 305,000 mt of high-quality, low-energy-consumption, and low-cost high-purity polysilicon. It is one of the major players in the polysilicon industry.

At present, the supply-demand imbalance in the polysilicon market has not been fundamentally resolved, and the industry as a whole continues to face the severe challenge of widespread losses. To strictly implement the spirit of the Central Economic Work Conference, regulate corporate behavior, prevent "cut-throat" competition, and promote the healthy and sustainable development of the PV industry, the company will gradually initiate phased maintenance work on high-purity polysilicon production lines at its Xinjiang and Inner Mongolia production sites, implementing orderly production cuts and capacity control for certain production lines.