Sunnier prospects for polysilicon

Frost & Sullivan expects the severe shortages and allocations of polysilicon, a key component of most solar panels, to turn around in 2008. The market-research company believes that polysilicon supply should catch up with the demand, offering sunnier prospects for the solar-energy industry. The majority of the new polysilicon quantities will come from four top suppliers that are expanding their production capacities. The big four—Hemlock Semiconductor, Renewable Energy Corp, Wacker, and Tokuyama—should add more than 17,000 tons of capacity in 2008, representing more than a 50% increase over their current capacities.

Frost expects demand from the semiconductor industry to grow at steady single-digit rates and demand for solar-grade polysilicon to reach more than 50% of the total demand for high-purity silicon in 2008/2009. Frost also reports that, in 2005, the global solar-photovoltaic market saw earned revenues of $6.49 billion. The company expects that figure to reach more than $16 billion in 2012, basing that prediction on a "huge demand" for polysilicon.