The competition between enterprises in the photovoltaic industry has now bid farewell to the original stage of fighting and killing, and has moved to a higher level of competition, becoming more and more like a game-“Three Kingdoms”!
Game 1 Silicon Chip Fight
At present, there are mainly six players in the silicon wafer segment: Longi, Zhonghuan, JinkoSolar, JASCO, Shanghai Machine CNC, and Beijing Express. See the figure below for details:
Among the six major players, JinkoSolar and JA Solar are mainly self-sufficient and do not sell externally. There are only four remaining companies that can be purchased on the market. Among them, Longi and Zhonghuan are the absolute leaders in the photovoltaic industry silicon wafer field. These two companies have monopolized the monocrystalline silicon wafer field for many years.
The underlying logic of Shanghai Computer CNC and Jingyuntong’s entry into the silicon wafer field:
First: Shanghai Computer CNC and Beijing Express have increased the production of monocrystalline silicon wafers due to the excessive profits in the silicon wafer field. Second: As we all know, the battle between 182 and 210 in the silicon wafer field has intensified and forced downstream buyers to stand in line. Therefore, the downstream industry also needs an independent third-party supplier. Under the “instigation” of the downstream purchaser, Shanghai CNC and Beijing Express joined the silicon wafer field. Third: LONGi and Zhonghuan continue to deploy downstream component businesses, eroding the market share of other component companies, and also arousing joint resistance from other component companies. In 2020, Canadian Solar, Risen Energy, Trina Solar and other component factories have signed large purchase orders with Shanghai Machine CNC; fourth: Will the third and fourth have a chance to rise? It’s obvious to all that when the boss fights, the third and fourth are always the ones who suffer. In 2021, LONGi’s silicon wafer production capacity will reach 100GW, and Zhonghuan’s silicon wafer production capacity is expected to reach 80GW, while the entire photovoltaic industry only needs 200GW for silicon wafers. With the stability of the management of Zhonghuan, in 2021, LONGi and Zhonghuan will surely launch a fierce price war in the field of monocrystalline silicon wafers. Perhaps in 2021, Longi and Zhonghuan will join hands to “strangle” the CNC and Beijing Express. It will be known at the end of 2021 whether the third and fourth will succeed.
Silicon is king in the second game
Under the fierce competition in the silicon wafer segment, don’t forget to “own silicon as king.”
The silicon material segment experienced a surge in 2020, from 70 yuan/kg to 90 yuan/kg at the beginning of 2021, an increase of 29%, and under the speculation of various capital and media, there is a trend of sharp rise. The major silicon wafer factories have signed large purchase orders with silicon material factories to reserve silicon material production capacity in the next three years.
At present, in the silicon material sector, there are only five players left, namely: GCL-Poly, Tongwei, Xinte Energy, Daquan New Energy, and Eastern Hope.
Yesterday, Xinjiang Great New Energy Co., Ltd. successfully launched its debut on the Science and Technology Innovation Board and returned to the mainland capital market. Daquan New Energy raised 5 billion yuan this time, which is mainly used for high-purity semiconductor material projects with an annual output of 1,000 tons, a polysilicon project with an annual output of 35,000 tons, and to supplement working capital.
Game 3: Silicon battle
In the field of silicon materials, Tongwei’s production capacity will reach 165,000 tons by the end of 2021, surpassing the leader of silicon materials-GCL.
Longi and Zhonghuan sensed the threat of Tongwei’s silicon materials, and urgently needed to seek partners in the silicon materials market to counterbalance Tongwei’s dominance.
GCL, as the former king of silicon materials, suffered a severe blow to the entire group when power plant subsidies were in deficit. But it is worth noting that in 2020 GCL-Poly’s granular silicon technology has made significant progress. On February 3, 2021, the 10,000-ton granular silicon production line will officially cut the ribbon.
Driven by various factors, LONGi and Zhonghuan joined hands for the first time to contract for GCL’s 40 billion yuan silicon material production capacity.
In particular, LONGi, as a monocrystalline silicon leader, has not been in contact with GCL for many years, and this cooperation is not easy.
Currently, Longi, Zhonghuan and GCL are holding groups for warmth.
The fourth game
At present, the battle between vertical integration and specialization in the photovoltaic industry has gradually become clear. Major companies are rushing on the road of vertical integration. Currently, the leading companies in vertical integration include Longi, Tongwei, Zhonghuan, and GCL Group. , JinkoSolar, JA Solar, Oriental Risen, Jinzhou Sunshine, etc.
The industrial chain involved in the eight photovoltaic companies is as follows: February 2, 2021 is a turning point for the photovoltaic industry. Since then, the photovoltaic industry has entered the “Three Kingdoms Era” from the “Warring States Period”. It is a great blessing in life to witness the current photovoltaic industry!