Controversial Polysilicon Investment in Oman: Balancing Innovation and Geopolitics

The International Finance Corporation (IFC) has sanctioned financing of up to $250 million for a major polysilicon manufacturing project in Oman, despite US reservations. According to insiders, the project's approval faced abstentions from some European directors, highlighting deep-rooted geopolitical concerns. The project, led by United Solar, plans a substantial production output of 100,000 metric tons annually.

The financial backing has raised eyebrows due to United Solar's Chinese ties, particularly its chairman, Zhang Longgen, and shareholder IDG Capital, both linked to China. Ongoing concerns about Chinese influence in global polysilicon production add a layer of controversy, as the US has historically urged caution against backing Chinese enterprises.

Responding to these developments, neither the U.S. Treasury nor World Bank authorities have commented. In parallel, the US has bolstered domestic production with a $325 million grant to Hemlock Semiconductor, fostering its chip supply chain. Meanwhile, China's industry faces looming adjustments due to excess capacity, potentially reshaping the market landscape.