Wuxi Suntech Prepares to Launch 4 500 T/A Polycrystalline Silicon ProjectConstruction on the 4 500 t/a polycrystalline silicon project to be launched by Wuxi Suntech Power Co., Ltd. (Wuxi Suntech) in Qinghai will be started in the first half 2007. The company is engaged in the research, production and sales of crystal silicon solar cells, components and photovoltaic power generation systems. The early-stage design of the project is already completed and the production will be started after one year and a half of the construction.    The 1 260 t/a polycrystalline silicon project constructed by Sichuan Xinguang Silicon Sci-Tech Co., Ltd. with an investment of RMB1.29 billion was put on stream on February 26th, 2007. (CCR2007, No. 8) Some people think that the involvement of Wuxi Suntech in the polycrystalline silicon production sector will further promote the capacity expansion and ease the supply deficit of polycrystalline silicon in China. Some others however think that redundant construction and overheated investment in polycrystalline silicon projects should also be avoided.Aggressive ambition In January 2001 Prof. Shi Zhengrong who has won the degree of master in laser physics and the degree of doctor in electronic engineering came back to China with rich photovoltaic knowledge and experience gained in Australia. He set up Wuxi Suntech Power Co., Ltd. and held the post of general manager himself. Prof. Shi went to Australia in 1988 and studied in University of New South Welsh. He was once the executive director of Australia-Asia-Pacific Solar Energy Power Co., Ltd. and sponsored the research and development of second-generation polycrystalline solar thin-film cells. He has won more than 10 invention patents of solar energy cell technology. He is still a member of the Institute of Solar Energy in both Australia and New Zealand, a member of the Institute of Material Research and a member of the Institute of Electricity and Electronic Engineering (IEEE).    Wuxi Suntech was listed in the New York Securities Exchange in December 2005 and Prof. Shi became the richest man in China. Owing to its listing in the stock market, the company has gained funds for expansion. The goal set by the company is to create a complete industrial chain from the purchase of raw materials to the sales of end products.    At the end of July 2006, Wuxi Suntech signed a purchase confirmation on silicon chips with MEMC Electronic Materials, Inc., one of the 10 major silicon chip suppliers in the world. It is agreed that MEMC will provide Wuxi Suntech with solar energy grade silicon chips with a value of US$5.0-6.0 billion in the next 10 years. Wuxi Suntech will provide funds to MEMC for the use in capacity expansion to guarantee MEMC's stable supply of silicon chips.    The supply of silicon materials from polycrystalline silicon to silicon chips will be very tense in the next 3 years. By signing the contract with the raw material supplier, Wuxi Suntech has won the stable supply of raw materials with abundant funds. On August 2nd, 2006 Wuxi Suntech announced to purchase MSK with its headquarters in Tokyo. MSK is the biggest specialized producer of solar energy components in Japan. Through the acquisition Wuxi Suntech has started the reformation worldwide.    As several polycrystalline silicon projects will be launched in China, despite the signing of the purchase confirmation on silicon materials Wuxi Suntech intends to launch a polycrystalline silicon project itself. Cautious operationActivities conducted by Wuxi Suntech are closely related to the global supply deficit of silicon materials. According to the report released by China Electronic Material Industry Association in October 2006, the total output of polycrystalline silicon in the world was 29 100 tons in 2005, including 20 600 tons of EC-grade varieties and 8 500 tons of SC-grade varieties. The actual demand of solar energy polycrystalline silicon was however 14 500 tons. There is therefore a serious supply deficit. It is expected that the global market demand of polycrystalline silicon will be more than 70 000 tons in 2010.    It is because of this that existing polycrystalline silicon producers in China have started expansion and new investors have developed keen interest in polycrystalline silicon projects. A 3 000 t/a polycrystalline silicon project in Qujing Aixin Silicon Sci-Tech Co., Ltd. was started construction in April 2006 in Yunnan province. (CCR2006, No. 12) CSG Technology Holding Co., Ltd. has constructed a 4 500 t/a polycrystalline silicon project in Yichang, Hubei province. Luoyang China Silicon High-tech Co., Ltd. invested RMB1.4 billion in a polycrystalline commercialization project in December 2006. A 4 000 t/a polycrystalline silicon project funded by Jiangsu Sunshine Co., Ltd. with an investment of RMB3.5 billion was approved in Shizuishan, Ningxia.    Compared with these projects, the plan made by Wuxi Suntech was in a low tone and not many people even knew it. The information about the contract with Qinghai Provincial Government was not released either.   In view of the extremely heated construction of polycrystalline silicon projects, China Electronic Material Industry Association has warned that the investment threshold of the polycrystalline material sector is very high and an investment of over RMB1.0 billion is required to launch a 1 000 t/a project. In case the technology is not satisfactory, the product cost is high and the un-planned investment and low-level redundant construction appear, there will surely be a state of chaos and a waste of resources and energies in the polycrystalline silicon sector.