China’s Wafer Prices Jump Most Since 2023 on Production Cuts

Silicon blocks in a silicon wafer cutting facility in Xi'an, Shaanxi Province, China.

Photographer: Qilai Shen/Bloomberg

The price of key solar panel components in China surged the most in two years, driven by production cuts and a broader government push to address industry overcapacity.

Wafer prices rose 22% in the week through Thursday, the biggest gain since February 2023, according to data from the China Silicon Industry Association. While this is a turnaround, prices are still down more than 80% from a high in 2022.