2007, China solar cell industry is still rapid growth driven by domestic manufacturers of solar cells have increased yields. Produce 1MW solar cells on silicon consumption, driving the rapid development of the solar cell industry solar silicon market demand. Hynix and ST joint venture to build the 12 "production line put into operation in the field of semiconductors by SMIC in Beijing 12" production line capacity can enhance the favorable, driven, and domestic chip production line production can maintain a good level of semiconductor wafers market demand alsomaintaining good growth. Semiconductor and solar wafer market driven, the Chinese silicon market demand in 2007 than in 2007, an increase of 103.5%, the third consecutive annual growth rate of over 100%. And by the impact of the global polysilicon shortage, silicon prices continue to remain strong in 2007, the Chinese silicon market demand amounted to 21.21 billion yuan, an increase of 107.7% compared to 2006. 
   
   
   Occupy more than 90% of the market share of solar inverter manufacturers silicon market in China, the demand for silicon wafers, relative to the huge demand for solar energy market, the lower demand for semiconductor-grade silicon semiconductor wafers for purity requirements than and polished wafers and other products mainly its production process and the difficulty is much higher than solar-grade applications, which makes semiconductor wafer price is higher than solar applications. Higher average price of making a semiconductor wafer demand in 2007 amounted to 5.39 billion yuan, and its share of the market also increased to 25.4% from 6.6% of the demand. Solar wafer demand amounted to 15.82 billion yuan, the market share of a decrease of 18.8% compared to the demand, accounting for 74.6% of the overall market. Both from the demand exceeds or demand point of view, the field of solar energy has become the main consumption of silicon. 
    
    
   Crystalline silicon solar cells divided into monocrystalline silicon cells, polycrystalline silicon cells and thin-film crystalline silicon solar cells. The monocrystalline silicon cells with a high conversion rate, good stability, but also has a higher cost of less than. Polysilicon battery having stable conversion efficiency, but the highest cost performance. Crystal furnace initial small investment enterprise engaged in the production of solar cells monocrystalline silicon wafers than casting multicrystalline wafers, monocrystalline silicon cells therefore occupy the main position of the domestic solar battery. But with Ningbo wafer solar Co., Ltd., Baoding Yingli New Energy Resources Co., Ltd., Jiangxi LDK Solar Hi-Tech Co., Ltd., refinement Shaoxing Solar Energy Technology Co., Ltd., polycrystalline silicon wafer production capacity is increasing, the the domestic ingot polysilicon film isThe rapid development momentum, polysilicon films will be the development direction of solar wafers. 
    
    
   Technically less demanding solar wafers, barriers to entry are relatively low, in the huge market demand driven, in addition to some semiconductor wafer production enterprises to enter the market in the case of optimistic about the solar market demand, domestic also appeared in many franchise Solar wafer production enterprises. These companies have formed a number of competitive strength of off grid inverter silicon production enterprises, but is limited by the technical strength of the various manufacturers uneven, there are still a number of the strength of the weak, the production is not standardized enterprise exists, the scale is generally small, strong technical strength enterprise, the quality of their products is unstable.Domestic at this stage due to the lack of industry or national standards, the lack of standard monitoring environment, the rapid growth in the number of enterprises, as well as uneven enterprise strength easily disrupt the normal market order, and at the same time be jointly and severally affect some solar wafers the poor performance of the enterprise will also give the semiconductor silicon wafer manufacturer to bring some negative impact. In order to safeguard the normal market competition order, between enterprises, industry associations, and government should be a joint enterprise to strengthen their own strength, focus on brand building, to ensure that the long-term health of the enterprise development. 
    
    
   In recent years, the polysilicon material continuing shortage of silicon prices continue to rise. Due to the higher requirements of polysilicon production technology, production technology rests in the hands of the few manufacturers. In recent years, in order to alleviate the problem of the shortage of polysilicon, the world's leading producers of polysilicon has been expanding its production capacity of polysilicon production growth rate is lower than the demand speed. Domestic producers due to the many limitations of the technology, capital and other large-scale production of polycrystalline silicon semiconductor grade polysilicon enterprises especially small, domestic demand for polysilicon is mainly dependent on imports, so that the global polysilicon supply situation will directly affect The price of the domestic silicon products. 
    
   
   At present, the global polysilicon is still in short supply, this phenomenon is expected to continue in the coming years. With the growth of the polysilicon production, supply and demand for polysilicon in 2009 may be a certain degree of ease, but the shortage of polysilicon still can not get rid of the status quo in the near future. Affected by the upstream material supply, solar and semiconductor grade silicon prices continue to remain strong.