GreenergyDaily

Dec. 10, 2025

Several major Chinese polysilicon producers have set up a joint venture to help ease overcapacity in the raw material used in the solar supply chain, according to company registration data.

The entity, called Beijing Guanghe Qiancheng Technology Co., brings together 10 companies with a registered capital of 3 billion yuan ($425 million), a company filing on Qichacha shows. Polysilicon giant Tongwei Co. will hold a 30.35% stake through a unit, while GCL Technology Holdings Ltd. and Xinjiang Daqo New Energy Co. will control 16.79% and 11.13%, respectively.

China's solar sector is struggling with overcapacity, which has squeezed profit margins and fueled price wars. In response, the polysilicon producers have been planning a $7 billion fund to buy and shut down more than 1 million tons of capacity. A person familiar with the newly formed venture confirmed that it will serve as a vehicle to conduct capacity buyouts from smaller players.

Tongwei shares closed down 3% and Xinjiang Daqo fell 4.1% in Shanghai, while GCL slid 4.2% in Hong Kong.

The joint venture is in line with market expectations, making the polysilicon sector share price rally seem unsustainable, Daiwa Capital Markets said in a note. "We doubt whether the poly buyout plan will succeed in 2026 to support the China poly price, considering the soft supply-demand balance," they said.