One of China’s biggest producers of raw materials for solar panels, GCL Technology, is expected to expand its business into the manufacture of polysilicon for use in the solar-energy and electronics industries, reports the South China Morning Post. The Hong Kong-listed firm, formerly known as GCL-Poly Energy, signed a framework agreement with semiconductor display and materials maker TCL Technology.
They aim to invest RMB 12 billion ($1.9 billion) in a silicon materials plant in Hohhot, the capital of the northern autonomous region of Inner Mongolia. Polysilicon is the feedstock for both the solar and semiconductor industries. It has higher purity for making semiconductor chips, compared with polysilicon used in solar panels.
“The parties intend to carry out in-depth cooperation through investing in new [solar-grade] and electronic-grade silicon material projects,” GCL said in an exchange filing late on Tuesday. The Jiangsu-based firm currently focuses on developing solar-panel materials and solar farms.