In a significant market development, TCL Zhonghuan announced on 31 March an upward adjustment of its silicon wafer prices due to the far-reaching consequences of a major earthquake in Myanmar.

TCL Zhonghuan’s price increase affects three main wafer specifications: 183mm, 210R and 210mm. The price increase ranges from 5.7% to 6.5%. For example, the 183mm wafer price has increased from 1.23 Yuan to 1.3 Yuan. The 210R and 210mm wafers have each increased by 0.05 yuan to 1.55 yuan and 1.6 yuan respectively.

The 7.9 magnitude earthquake that struck Myanmar on 28 March had a domino effect on the silicon industry. It severely disrupted logistics along the China-Myanmar border and damaged transport and power facilities in Yunnan’s silicon hubs, such as Ruili. Prominent companies based in these areas, such as LONGi and Tongwei, faced short-term shutdowns of some of their silicon rod production lines due to equipment failures after the earthquake. This has led to a pronounced imbalance between supply and demand in the silicon wafer market.

In particular, Yunnan accounts for approximately 15% of the country’s silicon wafer production capacity. As a result of the earthquake, the capacity utilisation of several companies in the region has fallen, causing a short-term supply shortage that has inevitably pushed up prices.