Today's Shanghai Security News quoted an industry insider that most poly silicon projects that have not started construction have been put on hold.

"Poly silicon projects that have not started construction are generally being put off. Some of those already under construction have been urged to re-evaluate," he said.

Several weeks ago China's State Council warned of overcapacity and redundant construction in wind power and poly silicon industries. This was the first time that the central government warned of overcapacity in China's new energy sector, which had always been experiencing governmental support.

However, at a new energy summit held in Wuxi last week, most of the attending experts believed that the government would not restrict the development of poly silicon and PV industries despite the State Council's warning.

According to data released by London based New Energy Finance Ltd., all 23 Chinese poly silicon producers that follow the improved Siemens process have started production, with a total annual capacity of 35,000 tons. The annual capacity will top 48,000 tons after factories now under construction are completed.