China no longer approves new polysilicon projects in principle

China on the 24th released a polysilicon industry entry threshold, requiring solar energy polysilicon project size to be greater than 3,000 tons per year, and semiconductor-scale polysilicon projects greater than 1,000 tons per year.
According to incomplete statistics, there are 370 photovoltaic companies in 29 provinces and municipalities in China, of which more than 80 are polysilicon enterprises. The relevant person pointed out that China's polysilicon production has not yet unified energy consumption, land occupation and environmental protection standards, and most polysilicon companies still cannot compete with foreign companies in terms of cost and quality.
The Ministry of Industry and Information Technology jointly formulated this industrial policy with the National Development and Reform Commission and the Ministry of Environmental Protection. The new industrial policy sets the conditions for layout, capital, environmental protection, land use, and resource recycling.
According to the new industry threshold, new polysilicon projects will not be approved in principle until the new list of government investment projects is approved. Existing projects also need to be demonstrated and approved. Sub-standards will be rectified, and unqualified reforms will exit polysilicon production.
The Ministry of Industry and Information Technology has said that the polysilicon industry has seen overinvestment and overcapacity in various regions. According to the survey, the polysilicon industry plans to invest a total of 134 billion yuan, with an actual investment of 47 billion yuan. The project has a designed production capacity of more than 40,000 tons, and the project under construction has a designed capacity of more than 60,000 tons. The industry believes that the introduction of polysilicon entry barriers will cause a reshuffle in the industry.

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