OCI Group’s photo voltaic wafer manufacturing facility in Vietnam, Neo Silicon Expertise, will start full-scale operations subsequent January. OCI Group plans to mass-produce non-Chinese language wafers via the Vietnam plant to actively goal the U.S. market, the place large-scale photo voltaic initiatives are underway.
In line with trade sources on Dec. 25, Neo Silicon Expertise has accomplished all preparations for full operation in January and is presently present process preliminary operations. Beforehand, OCI Terasas, the Malaysian subsidiary of OCI Holdings, acquired a 65% stake in Neo Silicon Expertise via OCI One, a particular function firm established in September. With the authorities’ approval of the merger and acquisition (M&A) deal early this month, OCI One has turn into the biggest shareholder of Neo Silicon Expertise.
OCI Holdings plans to make use of your complete polysilicon output from OCI Terasas at Neo Silicon Expertise to mass-produce non-prohibited international entity (Non-PFE) wafers. Merchandise from a prohibited international entity (PFE) are these produced or procured by corporations belonging to international international locations of concern designated by the U.S. authorities, reminiscent of China, Russia, Iran, and North Korea. These merchandise aren’t solely excluded from advantages like U.S. subsidies and tax credit however should additionally bear excessive tariffs.
In response, OCI Holdings has established an entire non-Chinese language photo voltaic provide chain via vertical integration, spanning polysilicon (OCI Terasas) – wafer (Neo Silicon Expertise) – cell/module (Mission Photo voltaic Power). Neo Silicon Expertise’s annual wafer manufacturing capability is 2.7 GW (gigawatts), and it’s identified that this capability might be doubled to five.4 GW inside six months with extra funding. Mission Photo voltaic Power, OCI Holdings’ Texas subsidiary, which obtained a $265 million (roughly 380 billion gained) funding, can also be scheduled to ascertain a mass manufacturing system of over 2 GW for cells by the second half of subsequent yr.
Whereas the worldwide photo voltaic wafer market is experiencing a extreme oversupply because of the inflow of Chinese language merchandise, the demand for non-Chinese language merchandise is surging within the largest market, america, as a consequence of sanctions. Actually, within the North American and European markets, non-PFE licensed wafers are buying and selling at a 20-50% premium in comparison with their Chinese language counterparts.
Notably, the U.S. plans to totally implement PFE laws associated to photo voltaic subsidies beginning subsequent yr. Consequently, merchandise that go via Chinese language-affiliated corporations or use Chinese language uncooked supplies won’t be eligible for subsidies beneath the Inflation Discount Act (IRA), and these requirements are set to be additional tightened till 2029. The U.S. just lately imposed excessive countervailing duties on merchandise that use Chinese language cells and wafers, are processed in third international locations reminiscent of Cambodia, Thailand, Vietnam, and Malaysia, after which exported to the U.S. Investigations are additionally underway for Indonesia, Laos, and India.
OCI Group intends to actively reply to the demand within the high-growth U.S. photo voltaic market based mostly on its Non-PFE manufacturing system. In line with the worldwide market analysis agency Market Analysis Mind, the U.S. photo voltaic wafer market is projected to develop from $8.6 billion (roughly 12.48 trillion gained) this yr to $18.9 billion by 2033. In the meantime, the U.S.’s personal ingot and wafer manufacturing capability is round 20 GW, accounting for less than 1-2% of the worldwide complete. An trade official acknowledged, “Because the U.S.’s personal manufacturing capability can’t sustain with demand, the availability scarcity of (non-PFE photo voltaic merchandise) will inevitably proceed.”
