(Research Release)
According to in-depth research by SHINDEV, integrated silicon materials leader Hoshine Silicon Industry Co., Ltd. announced three major investment and capacity expansion plans on April 20, involving an integrated silicon-based new materials project, a 1.5 million-ton photovoltaic glass project, and a 200,000-ton high-purity polysilicon project. The total planned investment amounts to RMB 42.586 billion, highlighting the accelerating trend toward vertical integration across the photovoltaic (PV) value chain.
According to the company’s disclosures, Hoshine plans to invest approximately RMB 20.5 billion through its wholly owned subsidiary Zhongbu Hoshine to build an integrated silicon-based new materials industrial project in the Ganquanbao Economic and Technological Development Zone, Urumqi. The project, with a construction period of around 3.5 years, will include:
20 GW/year mono-crystalline silicon ingots
20 GW/year mono-crystalline silicon wafers
20 GW/year mono-crystalline solar cells
20 GW/year high-efficiency crystalline PV modules
Supporting utilities and auxiliary facilities
In parallel, the company plans to construct a 1.5 million-ton per year ultra-thin, high-transparency photovoltaic glass project with an investment of approximately RMB 4.455 billion.
Additionally, via its wholly owned subsidiary Dongbu Hoshine, the company intends to invest RMB 17.631 billion in a 200,000-ton per year high-purity polysilicon project in the Shanshan Industrial Park, featuring two production lines of 100,000 tons each and a construction period of around two years.
Hoshine stated that these investments aim to further extend its industrial silicon business downstream, forming a fully integrated PV new energy value chain and cultivating new growth drivers.
SHINDEV Research notes that in 2024, leading PV companies have accelerated large-scale integrated capacity investments. Major players such as LONGi Green Energy, TCL Zhonghuan, JA Solar, Trina Solar, and Shangji Automation have all announced expansion plans exceeding tens of billions of RMB.
LONGi plans investments of approximately RMB 45.2 billion in wafer and cell capacity
JA Solar announced plans to invest around RMB 40 billion in integrated production bases
TCL Zhonghuan plans to raise RMB 10.3 billion for N-type TOPCon solar cell projects
Market participants generally believe that vertical integration can enhance economies of scale, strengthen upstream-downstream synergies, reduce overall costs, and improve supply chain security.
However, SHINDEV Research emphasizes that vertical integration functions as an operating leverage, amplifying both returns and risks.
According to Duan Zhiqiang, President of SHINDEV Research Institute, the PV industry’s technological roadmap has yet to fully converge, with TOPCon, HJT, perovskite and other technologies developing in parallel. Under such conditions, large-scale integration can magnify competitive advantages during upcycles, but may also amplify downside risks during industry downturns.
“Each core segment of the PV value chain requires heavy fixed-asset investment, placing high demands on working capital management,” Duan noted. “Expanding into multiple segments increases management complexity, R&D spending, and market uncertainty, posing challenges to cash flow and balance sheet resilience.”
Hoshine also acknowledged that large-scale investments may exert pressure on cash flow and debt servicing capacity, introducing uncertainty into future financial performance.
Financial data show that in 2022, Hoshine Silicon recorded revenue of RMB 23.66 billion, up 10.62% year-on-year, while net profit attributable to shareholders declined 37.39% to RMB 5.148 billion. In the first quarter of 2023, the company reported revenue of RMB 5.729 billion and net profit of approximately RMB 1.003 billion.
As of April 21, Hoshine’s shares closed at RMB 79.44, with a market capitalization of approximately RMB 93.9 billion. Analysts note that amid cyclical volatility and aggressive capacity expansion, investors remain cautious regarding the pace and returns of integrated expansion strategies.
SHINDEV Research concludes that vertical integration remains strategically relevant for the PV industry at this stage. However, long-term success will depend on companies’ ability to balance capital strength, cash flow discipline, technological judgment, and operational execution. Enterprises that can manage these dimensions effectively are more likely to emerge as winners amid the next phase of industry consolidation.
