Premier Energies and SAS Form JV for Solar Wafer Manufacturing in India

Indian solar energy firm Premier Energies Limited has signed a 74:26 joint venture with Taiwan's Sino-American Silicon Products Inc. (SAS), a leading international semiconductor and solar firm. The joint venture will set up a 2 GW per annum solar wafer manufacturing facility in India. The new plant will slice polysilicon ingots into silicon wafers, which are important raw materials for the production of photovoltaic cells and solar modules. This is consistent with initiatives for growth of domestic manufacturing capacities in India's solar value chain under the Make-in-India initiative.

The joint venture aims to merge Premier Energies' track record of solar production in high volumes with the technology platform of SAS in semiconductor-grade silicon wafers. SAS's group company, GlobalWafers Co. Ltd., ranks as the world's third-largest semiconductor silicon wafer producer. Its wafer R&D and technical manufacturing capabilities will form the cornerstone for enabling backward integration for Premier Energies. This will reduce reliance on imports, improve supply chain stability, and localize solar manufacturing in India.

The joint venture will enhance operational resilience and meet increasing domestic demand for solar equipment components. India is one of the world's fastest-growing solar markets, and increased higher domestic production capacity is essential in order to deliver energy transition goals and reduce the carbon footprint of imported equipment. The new plant will cater to Indian and international markets, making the solar industry more export-oriented and self-reliant.

Premier Energies has 11.1 GW of installed capacity, out of which 5.8 GW is in the process of being installed. Premier Energies has been at the forefront of the Indian solar industry and has been the recipient of awards for its focus on innovation, sustainability, and employee welfare. The partnership with SAS is one of the key milestones marking its effort to improve capabilities in solar value chain. The new manufacturing unit will enhance India's infrastructure for producing high-quality solar components and add to the government's goals of making India an international clean energy manufacturing hub.

SAS, which was established in 1981, is the success name in the solar and semiconductor industry. The SAS Group, being bigger, produces other range of products in its subsidiaries, including high-quality silicon ingots, polished and epitaxial wafers, and sapphire wafers. The firm is renowned for its focus on technological innovation and product quality. Its joint venture with Premier Energies is its entry into the Indian economy, where strong demand for solar technology opens room for expansion.

Through SAS's worldwide manufacturing capabilities and Premier Energes's domestic operating strength, the joint venture would be well positioned to address a significant gap in India's solar manufacturing supply chain. So far, vast quantities of material used for local assembly of modules have been imported, mainly from China. Having a local wafer production facility is estimated to reduce lead times and limit supply chain disruptions and reduce production costs in the long term.

This strategic two-way joint venture is also aligned with India's Production Linked Incentive (PLI) schemes for solar manufacturing and other policy measures in support of indigenous value creation. The venture would also help leverage further technology transfer and human capital enhancement for Indian solar manufacturing. As decarbonisation and renewable energy expansion take greater importance, localising every step in solar manufacturing, e.g., wafers, is considered a keystone in achieving energy and economic development.

The 2 GW annual capacity of the joint venture in the new facility will have direct implementation in India's solar installation plans. It will be utilized in different end-use applications like utility solar farms, industrial power solutions, and rooftop solar. In the long term, the joint venture will double its manufacturing capacity based on market and government response. The ability to manufacture wafers locally also offers India the possibility to be a solar component manufacturer and supplier to other developing countries.

Premier Energies has experienced a consistent growth trajectory and successfully been publicly recognized for creating good working culture. The company's emphasis on technology absorption and sustainability puts it in a good position to reach the next level of vertical integration. The record of SAS in bringing wafer technology innovation and scale of operations, though, positions it as the right partner with which to confront the technical compulsions of having a wafer manufacturing line in a new city.

The collaboration is representative of broader international clean energy value chain movements, where manufacturers are seeking to relocate production off single country origins. For India, it's a foundation in building a robust solar manufacturing hub. Not only will the venture reduce costs and enhance efficiency but will provide jobs, boost local economies, and support global decarbonisation efforts.

Through local wafer manufacturing, the joint venture shall also be ready to cushion price swings in the solar industry, which previously was affected by supplies shortage and global trade vagaries. Domestic proximity of the wafers will provide Indian module manufacturers with more leeway and supply reliability.

The joint venture is testament to the partnership between international and domestic companies in generating shared value apart from achieving national policy goals. It is a case of the trend towards energy autonomy in supply chains, especially in the strategic energy sectors. Though solar power is bound to become more acceptable as a source of clean energy, initiatives such as this collective effort will be instrumental in ensuring timely project completion in domestic, commercial, and industrial areas. Source/Credits:

Press Release – Premier Energies Limited and Sino-American Silicon Products Inc