Development and prospective of Trichlorosilane

Tangshan Sanfu Silicon Industry Co., Ltd. Zhu Fa 2011-10-11

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 Contents
1

1. Production capacity of trichlorosilane in China

2 2007-2011 2. Development of polysilicon between 2007 and 2011

3
3. Analysis of production capacities (yields) of trichlorosilane and

polysilicon 4 4. Development prospective of trichlorosilane in future

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1 Production capacity of trichlorosilane in China

10

5000 It is not long for the thriving of trichlorosilane industry in China, and there are only less than 10 factories: Tangshan Sanfu, Tanshan Zhongyou, Taian Guangming, Jingzhou Huaxiang, Xuzhou Zhongxing, etc. However, the production scales of these factors are small. Of these factories, the annual production yield of Tangshan Zhongyou is only approximately 5000 ton. The major customer of trichlorosilane factors at earlier time is couplant factories, and then polysilicon market.
2007

After 2007, with the quick development of trichlorosilane industry, the market location of trichlorosilane is also changed. Polysilicon becomes the major product, and then couplant.

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1
Production capacity of trichlorosilane in China
2007-2011 Production capacity of trichlorosilane from 2007 to 2011 Year Production capacity (10,000 ton) Production yield (10,000 ton) 2007 2008 2009 2010 2011 2011(antici pated) 90

30

55

80

20

40

70

85

Note: these data are the results of our investigation

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1 Production capacity of trichlorosilane in China

The change of production capacity is induced by the following two reasons:
200712011

10 The former factory expands, eg., production capacity of Tangshan Sanfu was more than 10,000 ton in 2007, but increases to 100,000 ton in 2011.
200710201150 Trichlorosilane factory number increases from 10 in 2007 to 50 in 2011.

As considered from proportion, it is the increase of factory number that causes the quick increase of production capacity.
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22007-2011

Development of polysilicon between 2007 and 2011

2006-2011 Summary of production capacity of polysilicon from 2006 to 2011

Year
Yield (ton)

2006

2007

2008

2009

2010

2011 2011 (anticipat ed) 85000

287

1139

4515

15000

45000

2009 Note: data from 2009 China International Silicon Industry Conference, PV Industry Development Forum.

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3 Analysis of production capacities (yields) of trichlorosilane and polysilicon

1.2009201020 1-2 1. The two grows simultaneously and quickly. The increases are most obvious in 2009 and 2010. The annual increase is 200,000 ton for trichlorosilane, and 10-20,000 ton for polysilicon. 2. 2010 700012000 2. Supply and demand market shows insufficient supply. The capacity and yield difference of the two are induced by techniques and investment. As considered from total amount, trichlorosilane is surplus, but the silicone market develops fast these years, which compensates the difference between suplly and demand. Another reason, the times for production of these two are different, so the great fluctuation of market is induced, such as that in the second half year of 2010, the price increases from 7000 RMB/ton to 12,000 RMB/ton. 3. 20106 3. Trichlorosilane grows slowly. Through a few times of fluctuations, trichlorosilane factories become reasonable, the investment weakens. Moreover, the hydrogenation of polysilicon factory Xuzhou Zhongneng in June, 2010 also provides an alarm bell to the trichlorosilane industry.

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3 Analysis of production capacities (yields) of trichlorosilane and polysilicon

Distribution of trichlorosilane factories
Areas Enterprise number Yield 10,000 ton

11

50

12

20

11

10

0.5

86.5

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4 Development prospective of trichlorosilane in future

The growth of trichlorosilane industry profits from the quick development of polysilicon, and the immature hydrogenation of polysilicon in early period. 20091-22009 20092010 For example, before 2009, the production of new polysilicon factory surely can promote the quick development of 1-2 trichlorosilane factories. After 2009, hydrogenation is mature gradually, but the polysilicon projects under construction are abundant, so concentrated production occurs at the end of 2009 and 2010, which covers the fact that demand on trichlorosilane sharply decrease because of the gradual maturation of hydrogenation. HEMLOCKWAKEROCI However, from the polysilicon development history and the current international polysilicon development, it is necessary for polysilicon factories in China to operation in closed status. The so called international polysilicon tycoons, HEMLOCK, WAKER, OCI and Xuzhou Zhongneng all have realized closed circulatory operation, and this will also determine that trichlorosilane factors depending on polysilicon will close down.

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4 Development prospective of trichlorosilane in future

20121102013

120 As seen from the supply and demand market, it is predicted that the production capacity of trichlorosilane will reach 1,100,000 ton in 2012, and 1,200,000 ton in 2013. 201217201321 The production capacity of polysilicon (Siemens technique) will reach 170,000 ton in 2012, and 210,000 in 2013. (The above data include the products reconstructed and to be reconstructed). 201280% 1795.2 8103.2 Presume that in 2012, trichlorosilane production capacity will completely release, production capacity of polysilicon will release 80%, the proportion of trichlorosiane consumed by polysilicon is 1:7, then the consumed trichlorosilane would be 952,000 ton for polysilicon, 80,000 for couplant, and these two will consume 1,032,000 ton.
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4 Development prospective of trichlorosilane in future

80%

However, in fact, the released production capacity of polysilicon will not reach as high as 80%, the hydrogenation level is improved because of cost pressure, and the proportion of trichlorosilane consumed by polysilicon will greatly decrease.
20122013

Therefore, the supply of trichlorosilane in 2012 exceeds demand. It can also be deduced that, because of the delay of newly construction polysilicon projects in 2013, the former hydrogenation level is improved, so the supply of trichlorosilane will also exceeds demand.

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4 Development prospective of trichlorosilane in future

So the following suggestions are proposed for the whole industry: Limit blind expansion, and increase reasonable investment.

Reasonably plan the optimal scale of enterprise, scale effect should be pursued, but scale and cost will not always be directly correlated. Elements, such as safety, environment protection, technique, and resources, etc., should be considered comprehensively, to ensure the optimal scale. Promote industry chain and avoid market risk.

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 Introduction on development of Tanshan Sanfu Silicon Industry Co., Ltd.

108 Tangshan Sanfu Silicon Industry Holdings Co., Ltd. (formerly Tangshan Silicon Industry Co., Ltd.) is one of the earliest trichlorosilane factories, with a current production of 100,000 ton, a yield of 80,000 ton. It is the biggest trichlorosilane company in China. Based on its mature processes, superior technique, humanized administration, the product quality is guaranteed, and ranks in the leading position in the whole trichlorosilane industry. Our company has independent logistics section to guarantee the safe, stable and timely delivery. 6 5.6 OCI During the development of these years, our company has established strategic cooperation with most polysilicon companies in China. In June of this year, the 56,000 ton potassium hydroxide project puts into production, which provide guarantee for the stable supply of hydrogen chloride and cost reduction. Meanwhile, the jointly invested atmosphere white silica by our company and Korea will also put into production at the end of next year, which will provide powerful guarantee for the side product silicon tetrachloride of our company. As for the risk of trichlorosilane market, our company are planning downstream project, and finally the industry chain of our company will be reasonable and complete. Here I express our gratitude to the great support of our customers on behalf of Tangshan Sanfu silicon Industry Holding Co., Ltd.

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Thanks!
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