April 27, 2007 – Major suppliers of polycrystalline silicon have agreed to new terms with Japanese semiconductor customers that will raise prices by as much as 15%-20% in the coming year to $80-$85/kg, in answer to tight suppliers, notes the Nikkei daily paper’s Friday morning edition. Prices for poly-si used in solar cell production will rise about 15% to $60-$65/kg.

The new rates, the third consecutive year of increases, brings the costs to Japan’s volume users in line with international prices, notes the paper. Poly-si providers Hemlock Semiconductor Corp. and Tokuyama Corp. have been trying to increase output to meet demand, but expectations are that supplies will remain tight through at least 2008.