Zhonghuan Semiconductor (TZS) will invest 2.06 billion yuan ($323 million) to build a new 120,000-ton capacity polysilicon project and additional polysilicon R&D facilities in Inner Mongolia. TZS confirmed that it has signed an agreement with the People's Government of Inner Mongolia Autonomous Region and the People's Government of Hohhot City, where the manufacturer will build a high-purity polysilicon plant, a national silicon material research and development center and other supporting projects in Hohhot.

Under the terms of the deal, TZS will also receive grid-connection agreements and favorable tariff terms for solar PV projects in the region. TZS said it had chosen Inner Mongolia as the location for this new expansion based on its existing footprint in the region, where it has operated manufacturing facilities for over a decade.

Zhonghuan said its existing plant in Hohhot, known as the Zhonghuan Industrial Park, is the world's largest monocrystalline silicon production base, and the new facilities add to its capacity, turning the base into "China's Silicon Valley."

The manufacturer further said that the new facility will give it "synergistic advantages," adding that the investments it is making now will help the company reduce costs strategically when prices fluctuate, foster industry collaboration and stabilize the industry's supply chain. Keywords: engineering construction, engineering news

TZS's investment comes at a time when polysilicon and solar wafer prices remain high. TZS has raised wafer prices four times in 2022, with the latest pricing update (published on April 2, 2022) pushing prices up 2% to 3%.Editor/XingWentao