3 Reasons behind the Increase in Silicon Prices

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3 Reasons behind the Increase in Silicon Prices

• Silicon Specialist LLC

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• Silicon has become one the most sought-after
  element. Due to its use in various industries and
  especially in electric industry, silicons demand
  has been on the rise for quite some time now.
  Although it is the second most abundant element
  in the Earths crust, the world still faces a
  shortage of silicon. Basic reason lies in
  acquiring and processing pure silicon. Due to
  increased demand the silicon suffers a global
  production shortage.
• This has led to shortage of silicon supply,
  resulting in increase in the prices. Because of
  the recent noticeable increase in silicon prices,
  various industries have come under the fire, and
  there has been a lot of discussion on the
  material and different industry chains. In this
  article, we have discussed major reasons behind
  increase in the prices of silicon over the last
  few months. Lets look.

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Hoarding of Silicon by the First-tier
Manufacturers

• The major reason behind the surge of silicon
  prices is the imbalance between the demand and
  supply of silicon. A ludicrous approach in this
  regard is exhibited by the first tier
  manufacturers who keep piling up the raw material
  for future needs as well.
• With their long-term orders, they try to get
  hold of as much of raw material as possible, so
  that there is no risk involved when it is time to
  deliver. Silicon wafer major buyers are solar
  cell manufacturers, whereas they themselves are
  dependent on polysilicon raw materials.
• In their effort to be prepared for any shortage,
  and to have enough raw materials in their stock
  to deal with any kind of emergency, they keep
  stocking the raw material. Their hoarding has a
  dominos effect and triggers a ripple effect in
  various sectors. With hoarding, and excessive
  storage of silicon, the demand increase putting a
  strain on the supply. The basic rule of economic
  prevails as the prices take a hike.

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Energy Consumption Controls in China

• China is the worldwide largest producer of
  silicon. However, due to shortage of fuel such as
  coal, the processing cannot be carried out as it
  used to be. The production of refined silicon
  has experienced a dip owing to lack of coal in
  China. The processed silicon is the basis for
  manufacturing microchips, transistors, car engine
  blocks, solar panels, medical implants, and
  various other applications.
• Since not ample amount of silicon is made, enough
  silicon cannot be supplied to various industries.
  Chinese provincial authorities have imposed
  energy consumption controls to regulate and
  control carbon emission reduction.
• Due to green environment measures, the major
  producers of silicon in Yunnan (China) have been
  only providing 10 output. Because of this
  aggressive energy consumption measure, mostly
  facilities have stopped operating throughout the
  week. Instead, they open for a few days in a
  week.
• Because of energy rationing, silicon production
  has experienced a reduction. This has
  consequently increased the demand for raw
  material, resulting in price increase by 300.

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COVID-19 Shutdown

• Due to COVID-19, all sectors experienced a
  shutdown. Same is the case with silicon
  manufacturers. The small quantity of silicon
  manufactured had too many buyers in the market,
  willing to pay a far higher price. Since China is
  the major producer of silicon, and the country
  that was struck badly by COVID, the situation of
  lockdown led to shortage of silicon in industry.

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Silicon Specialist LLC

• Silicon Specialist LLC is a leading company that
  deals in silicon products. These products are
  used across various industries including
  sensitive sector of health. It indicates the
  significance and criticality of high-quality
  silicon to be used in applications.
• At Silicon specialist, we specialize in making
  Sic Wafers. These high-quality wafers are a
  surefire way to make efficient and
  high-performance end products. You can get a
  Silicon Wafer Reclaim if you dont feel satisfied
  with the raw material you have got from us. To
  know more about our products, visit
  products/services tab.

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  94545
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