Solar guys put pressure on semi prices

DEMAND FOR SOLAR grade silicon is piling pressure on electronic semiconductor companies with the industry facing price pressure and shortages because polysilicon is in short supply.

And few are prepared to put much effort into creating new polysilicon fabs with the cost of entry for the rock processors a staggering quarter of a billion dollars.

Malcolm Penn, speaking at a semiconductor conference near Holland Park today, said that people demanding solar grade polysilicon were prepared to pay the price for the stuff, while electornics semiconductor firms expected it to be as cheap as chips.

This could lead to a potential silicon triple whammy, said Penn. Substrate prices are already increasing as a direct result of the polysilicon price increases, while 200 millimetre wafer demand is increasing without adding any additional substrate capacity, he warned. µ