The price of polysilicon has been falling significantly, affecting China-based firms. Hence, the China government plans to merge the various 60 polysilicon firms conducting business in the country. However, industry sources believe to merge the polysilicon firms in the same province is easy, but to do so across different provinces will be an obstacle.

Industry sources noted that recently small- and medium-size polysilicon firms in China have been clearing out inventories causing the price to decrease even further.

The government in China hopes through merger, there will be 8-10 polysilicon firms and the market will then return to normal, said industry sources.

However, industry sources added many polysilicon firms have been subsidized and supported by local governments to stimulate the local solar industry. Therefore, if the government wants to merge two separate polysilicon firms in two different provinces, there will be many obstacles such as budgets and financial capital supports.

There will be other problems such as public safety and environmental issues, industry sources pointed out, maybe it would be better just for the firms with obsolete equipments to exit the market naturally.

China's government has been eager to save the industry and begin an investigation to rival the Solar Trade Petition started in the US.