
"China is moving to dominate the global market for polysilicon, a key material used in chips, by flooding the industry with cheap, subsidised product to drive producers in other countries out of business. This is according to a report by the Information Technology and Innovation Foundation (ITIF), a think tank based in Washington D.C. It warns that Beijing is providing "significant support" to its own polysilicon industry in an effort to establish loca businesses as the dominant global suppliers."
"According to ITIF, manufacturers of the material rely on the sale of solar-grade (less refined) polysilicon used in solar panels in order to maintain an economy of scale required to enable their production of semiconductor-grade (more refined) polysilicon. However, Chinese manufacturers with financial support from Beijing have ramped up production of the less refined material, establishing them as the dominant global suppliers of solar-grade gear, threatening the financial viability of polysilicon makers in the US and elsewhere."
Beijing is backing a rapid expansion of its polysilicon industry through subsidies and increased production of lower-grade polysilicon to capture global market share. Polysilicon serves as the primary substrate for wafers used across semiconductor fabrication. Producers rely on sales of solar-grade polysilicon to achieve the economies of scale needed for semiconductor-grade output. Chinese firms have expanded solar-grade production, grown via facilities in Africa, India, and the Middle East, and operated despite losses while restricting American polysilicon exports. One US supplier has filed for bankruptcy; many others face financial risk. China holds an overwhelming share of global solar-grade production (about 89%).
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