Longgen Zhang: Basically, if you look at the figure today, outside of China silicon, majority is Wacker, OCI and Hemlock. I think add together, it’s around 80,000 tons. That cannot meet, I think, even U.S. market, 50 GW, let’s say, 50 GW, I think, needed at least, I think, 120,000 metric tons, right? Of course, I think the U.S. is not only just polysilicon module. There may be also same thing in other stuff. So we see, basically, I think Europe, U.S. U.S. is a typical market is not only besides you see the — I think I stimulus because also the political issues. For example, the antidumping, the tariff, all the stuff, CBD, AD and plus, I think, over-label force that reaction. All these, I think, you can see today, for example, like Trina, I think they use Wacker materials produced in Vietnam from wafer cell module.
This can easily selling, I think the module to U.S. around $0.40 per watt. Also, I think [indiscernible] do the same thing. So I think in the U.S. market right now, the market can absorb high module price. It’s already there, I think. Then as I think the U.S. market continue asking for — from I think model to cell and wafer step-by-step required localization materials, I think that will push the capacity from module, cell and silicon. The same situation, I think, will happen in Europe. So Europe, I think from you have to — I think in the future, I think — I’m not remember that maybe 85% or 65%, you have localization. So that’s why I think a lot of Chinese single player will move to Europe. But today, you see I think the production ecosystem, I think the environmental, I think Middle East, Southern Asia, maybe same as China, I think it can produce, I think, the lowest cost the effective module products.
So it’s a lot of right now, company right now because I think go to the Middle East, like Saudi, UAE and Oman, Qatar because they have 20, 30 versions in the Middle East and also the strong relationship right now political relations with China. So we see a lot of China — you see also a lot of news come out. You can see CECL the news with the industry, right? You can see that. And also U.S., you also can see, I think, LONGi, Jinko expansion in U.S. and Europe, then a lot of right now, I think, not only module, but also, I think the wafer capacity right now is moving to Europe. So I think this has happened. I think, become global production, global products. That’s a good thing. I think — that’s also very easy. I think the market demand and supply become more healthy.
Philip Shen: Great. Just a follow-up…
Longgen Zhang: Yes.
Philip Shen: Sorry to interrupt you. Just to kind of focus the conversation a little bit. Just I thought you were referring to Chinese polysilicon producers ramping facilities in the — outside of China. Do you — are you aware of any of those activities? And do you think you might ramp polysilicon production facilities outside of China? And if so, where would that still be the Middle East and maybe Southeast Asia or would that be some other locations?
Longgen Zhang: I think it definitely is, I think, a very — I think the economic stimulus to attract Chinese producer to move outside of China to produce the silicon. But if you remember that silicon plant is capital-intensive, also environmental, and also in the chemical industry. So the design, the permits, all this, I think, is very high. Daqo also did a lot of research. For example, if we go to U.S., maybe taking 5 years to finish the construction, then 10x the total investment. So it’s impossible for us to set the plants in any Chinese, I think, producer to set the plants in U.S. Then if you go to other places like Middle East, you have considering. If you set up plants in outside of China, what’s the competitive edge, right?
