Global demand for polysilicon to surge 25 per cent in 2014

Santa Clara, USA - Demand for polysilicon used in solar and semiconductor applications is expected to rise sharply to 282,000 metric tons in 2014, up 25% versus last year.

According to the latest NPD Solarbuzz Polysilicon and Wafer Supply Chain Quarterly report, the growth in demand for polysilicon is being driven by the rapid increase in end-market solar photovoltaic (PV) module shipments, which are now expected to reach approximately 49 gigawatts (GW) this year.

Polysilicon used for semiconductor applications typically requires very high purity of 11N (99.999999999%) and very low levels of contaminants. Semiconductor polysilicon is a high value-added segment, but future demand growth in this mature market is only expected to be modest.

In contrast, solar PV-grade polysilicon has less stringent purity requirements, but it has the potential for very high growth rates when solar panel demand is strong; however, the growth trajectory in polysilicon supply and end-market demand is not always directly correlated.

It may take three to six months after polysilicon is produced for it to be converted into wafers and cells, and then shipped as finished modules through distribution channels for installation. This lag time can push polysilicon demand higher than module demand, in a rapidly expanding market.

Source: IWR Online, 12 Feb 2014