Regarding whether the rise in silicon prices affects the prices of components, the leading company in the photovoltaic industry stated that the core issue is the mismatch between supply and demand and the growth in end-user demand not meeting expectations.

Industry sources said that a leading manufacturer of silicon materials proposed to reduce production and support prices, which may boost component prices. As a result of this news, stocks in the photovoltaic sector surged on that day. Among them, shares of Tongwei Co., Ltd. even reached the daily limit-up. What impact will it have on downstream component prices if upstream silicon material prices are supported? A senior executive from a leading photovoltaic component company told reporters that if upstream silicon material companies reduce production and support prices first, causing a price transmission downwards, components may increase in price, which would be beneficial for the overall industry recovery. However, based on the current operating rates, the power of price regulation by the upstream is limited. The core issue in the current stage of the photovoltaic industry is the mismatch between supply and demand, combined with the fact that the increase in demand in the end market is less than expected. In order to change the situation of increasing revenue but not profit in the photovoltaic industry, it is still necessary to actively exert the market's survival of the fittest regulatory mechanism and accelerate the elimination of backward production capacity in order to gradually return to supply-demand balance.