GCL to raise $450 million for China polysilicon consolidation plan

<p class="p1"><span class="s1">GCL plans to raise $450 million to aid consolidation in China’s polysilicon sector and support the shift from tunnel oxide passivated contact (TOPCon) to back-contact solar products.</span></p><p>Chinese polysilicon producer <a href="https://www.pv-magazine.com/2025/01/23/gcl-cuts-granular-silicon-production-costs-by-15/" rel="noopener" target="_blank">GCL Technology</a> said it plans to raise HKD 5.45 billion ($700 million) through a share placement, selling 4.74 billion new shares at HKD 1.15 each.</p>
<p>Net proceeds of about HKD 3.51 billion will mainly support Beijing’s plan to <a href="https://www.pv-magazine.com/2025/08/11/is-chinas-7-billion-plan-to-reduce-polysilicon-overcapacity-feasible/" rel="noopener" target="_blank">consolidate the polysilicon industry</a>, the company said. The government-backed initiative aims to restructure production capacity and reduce oversupply.</p>
<p>The plan calls for China’s six largest polysilicon manufacturers – Tongwei, GCL, Daqo, Xinte, East Hope and Asia Silicon – to raise about CNY 50 billion to acquire and idle roughly one-third of the nation’s output, equivalent to 1 million metric tons of lower-quality capacity. Industry analysts say such a move could stabilize pricing across the photovoltaic supply chain.</p>
<p>The six producers have a combined capacity of nearly 2.5 million metric tons, compared with about 700,000 metric tons operated by other firms.</p>
<p>GCL added that part of the funds will also be directed toward growing silane demand as the solar industry shifts from TOPCon cells to back-contact cells, as well as for working capital and debt repayment.</p>