Semiconductor Type:
Solar PV
Solar photovoltaics (PV) convert sunlight directly into electricity using semiconductor materials. PV devices are the largest deployment of optoelectronics worldwide, spanning utility-scale solar farms, rooftop systems, and integrated building materials. Silicon remains dominant, but thin-film and perovskite technologies are gaining traction. As energy demand and decarbonization goals accelerate, PV production and semiconductor supply chains are strategically important.
Role in the Semiconductor Ecosystem
- Largest volume deployment of semiconductor materials (billions of cells annually).
- Provide renewable energy input to power-hungry fabs, gigafactories, and datacenters.
- Drive innovation in crystal growth, thin-film deposition, and materials science.
- Depend on many of the same critical minerals (Si, Ag, In, Ga, Te) as electronic chips, creating competition for resources.
PV Technology Categories
- Crystalline Silicon (c-Si): Mono- and poly-crystalline silicon wafers; >85% of global PV market.
- Thin-Film PV: Cadmium telluride (CdTe), copper indium gallium selenide (CIGS), amorphous silicon.
- III–V Multi-Junction: GaAs, InP, Ge-based devices; high efficiency but very high cost; space/defense markets.
- Perovskite PV: Emerging hybrid organic-inorganic materials with high efficiency potential; stability challenges.
- Heterojunction & Tandem Cells: Combining crystalline Si with perovskite or thin-film layers to boost efficiency.
Representative Vendors
| Vendor | Technology | Approx. ASP | Strengths | Notes |
|---|---|---|---|---|
| LONGi Green Energy (China) | Monocrystalline Si wafers + PV modules | $0.15–$0.30/W | Largest global wafer + module producer | Supplies wafers to many Tier-1 panel makers |
| First Solar (USA) | CdTe thin-film modules | $0.20–$0.35/W | Leader in thin-film PV efficiency | Favored for utility-scale US projects |
| JA Solar (China) | Mono-Si PERC + bifacial modules | $0.15–$0.25/W | High-volume Tier-1 supplier | Global distribution to EPCs and utilities |
| JinkoSolar (China) | Mono-Si TOPCon + bifacial modules | $0.14–$0.25/W | Innovation in high-efficiency Si cells | One of top 3 global PV suppliers |
| Oxford PV (UK/Germany) | Perovskite/Si tandem cells | $0.30–$0.50/W (est.) | Pioneer in tandem efficiency records | Commercial rollout beginning 2025+ |
| Hanwha Q CELLS (Korea/Germany) | Mono-Si + heterojunction modules | $0.16–$0.28/W | Strong in EU markets + energy storage integration | Part of Hanwha Group’s energy portfolio |
Upstream Feedstock
Solar PV relies on massive volumes of polysilicon as its primary feedstock. This same material also underpins semiconductor wafer production, creating overlap and potential competition between PV and chip fabs.
- Quartzite Mining: High-purity silica rock is reduced in electric arc furnaces to produce metallurgical-grade silicon (MG-Si).
- Polysilicon Refining: MG-Si is converted into polysilicon via the Siemens process or fluidized bed reactors (FBR). Electronic-grade (9N+) purity is used for semiconductors, while solar-grade (6N–9N) is used in PV.
- Energy Intensity: Polysilicon production is highly electricity-intensive, often concentrated in regions with abundant hydropower or coal (e.g., Xinjiang, Yunnan, Sichuan).
- China’s Dominance: Over 75% of global polysilicon production is located in China, creating strategic dependencies for both PV and semiconductor industries.
- Reshoring Initiatives: U.S. IRA incentives, EU Green Deal funding, and India’s PLI schemes target domestic polysilicon and wafer supply chains to reduce reliance on imports.
For deeper detail on polysilicon production technologies, purity requirements, and global supply risks, see the dedicated Polysilicon & Wafer Feedstock page.
Supply Chain Considerations
- Silicon Wafers: PV consumes the majority of global Si wafer tonnage, competing with semiconductors for polysilicon feedstock.
- Silver Use: Ag paste for cell contacts is a major cost and resource constraint; alternatives under development.
- Geopolitical Risk: China controls >70% of PV manufacturing capacity (polysilicon, wafers, modules).
- Manufacturing Footprint: Regional reshoring (U.S., EU, India) driven by IRA and other incentives.
- Recycling & Circularity: End-of-life panels require glass/Si recovery and hazardous waste handling (Cd, Pb).
Market Outlook
The global solar PV market surpassed ~$200B in 2023 and is projected to exceed ~$350B by 2030 (~8% CAGR). While crystalline silicon will remain dominant, thin-film CdTe and tandem perovskite-Si architectures are expected to take share. Policy incentives (U.S. IRA, EU Green Deal, India PLI) and national security concerns will accelerate regional diversification of PV supply chains.
