On September 21, Hongling New Energy Technology (Urumqi) announced that it has signed an agreement to develop a high-purity polysilicon manufacturing project in a small and medium-sized enterprise incubation industrial park that is located in Urumqi’s Midong District. Urumqi is the capital of China’s Xinjiang Autonomous Region. The total investment in the project is estimated at RMB 9.5 billion. Spanning an area of 931,998 square meters, the project will have a production capacity of 100,000 tons per year is expected to take 15 months of to complete. This announcement was first picked up by other Chinese media outlets.
Honglin will divide the project into two phases, each comprising 50,000 tons per year of production capacity. The first phase will soon begin construction and is expected to enter operation in the fourth quarter of 2023. As for the second phase, its construction will start in March 2023. The project is expected to be fully ramped up by August 2024.
Once up and running, the project will supply high-purity polysilicon for N-type monocrystalline growth and semiconductor-grade wafers. Honglin said the aim of the project is to reverse the situation of domestic electronics manufacturers relying too heavily on foreign imports of electronics-grade polysilicon. When it is in operation, the project is projected to generate around RMB 10.8 billion in annual total output value and around RMB million in annual taxable income. Furthermore, it will create around 1,400 local jobs.