On the evening of June 3, Daqo New Energy released the "Announcement on Outbound Investment and the Launch of New Businesses." According to the announcement, the company's subsidiary, Daqo Energy Technology (Shanghai) Co., Ltd., has signed an investment agreement with the Management Committee of the Kunshan Economic and Technological Development Zone. The company plans to build the Daqo Smart Energy System Manufacturing Base project in Kunshan, Jiangsu province, with a total investment of approximately 6 billion yuan, officially entering the fields of energy storage and Artificial Intelligence Data Center (AIDC) power supply and distribution.
The announcement further noted that the project will be implemented by a newly established independent legal entity under Daqo New Energy in the Kunshan Development Zone. The construction site is located on industrial land west of Xijiang Road and north of Dongguang Road within the zone. The project aims to build a next-generation manufacturing base for power supply and distribution and integrated smart energy systems designed to serve intelligent computing centers (AIDCs).
The project, with its total investment of 6 billion yuan, will adopt a phased construction model:
Phase I: The total investment for the first phase is approximately 2.1 billion yuan.
Phase II: The second phase will be advanced at an appropriate time once relevant industrial policies and investment conditions are met.
Timeline: The overall construction period is expected to take 24 months.
The project will primarily focus on the research and development, manufacturing, and sales of smart energy system solutions and related equipment. These products include energy storage systems, solid-state transformers, solid-state circuit breakers, and solid-state batteries.
Regarding the core reason for expanding into this new business, Daqo stated that its original business was heavily concentrated on the R&D, production, and sales of high-purity polysilicon, which is significantly affected by cyclical industry fluctuations. By extending into areas such as energy storage and AIDC power supply and distribution, the company can effectively diversify its operational risks and cultivate new profit growth engines.
From the perspective of technological synergy, Daqo's mature capabilities in power electronics, system integration, and intelligent control can be directly transferred to the R&D and manufacturing of AIDC smart energy system solutions and related equipment (including energy storage systems, solid-state transformers, solid-state circuit breakers, and solid-state batteries).
Source：EnergyTrend