For example, like Wacker, OCI because they can easily to traceability to export use their silicon produce final products export to U.S. Right now, I think next 2 years, Chinese polysilicon maybe were stable, maybe between, I think, around RMB 60 to around RMB 70 — between RMB 75, I think like that channel. That’s what I’m thinking, okay. Then I think this also will push, I think, some Chinese producer — silicone producer will move outside to China to other locations outside of China to produce silicon. As you can see that like in U.S. IRA already attract a lot of company, right now Chinese company to do the module, I think, sell even waiver. So I think that tendency will continue to come in. So I think globally, I think after 2 to 3 years, I think the Chinese maybe [indiscernible] the capacity is not only silicon, maybe wafer cell always oversupply right now.
So that’s why cost of module price right now from RMB 2 per watt down to like near RMB 1.4 per watt. Definitely the good thing because returns on projects is higher. But that may be stimulate the installation, but also a lot of installation continue going on the market demand and in-store, then go to grid also have come — have problems, especially in China. So it’s all trade-off. You’re thinking you see the module price go down, maybe you will increase II on the project. But in the meantime, you see the connect to the grid delay also will affect the returns on II. So — but China right now, the market is so hot, we think the rooftop, the SOE , I think it’s all going on. So I don’t think any problem. Within 2 years, I think Europeans continue to go — I think continue to grow.
The only thing the over-label force action in Europe is starting 2025 Q2. So I think that’s give time to the Chinese producer to move the production outside of China. So I think that’s — you see my — what I’m thinking to the whole market in the future. But remember, Daqo is the only one in China right now, know that produce high-quality products can compete with Wacker. So especially, I think as the N-type silicon continue to grow, we already see the price difference between N-type and P is around right now RMB 8 to RMB 10 per kg. So our advantage is very clear. If you look at our Q2, I think the gross margin is almost more than 50%. I think we still can keep our gross margin even, let’s say, in Q3, Q4, still above — even Q4 still above 30%.
I think 20% is our premium compared with other players, competitors based on the quality and the cost effective and the scale.
Philip Shen: Great. That was a lot of color. You said something very interesting just now about how China — Chinese producers could launch and ramp capacity outside of China to serve the U.S. and other — maybe even Europe.
Longgen Zhang: Middle East.
Philip Shen: So I was wondering if you could highlight — right. So can you talk about — like do you guys have plans to ramp up facilities outside of China? And then how many metric tons do you see? Are there announcements already of who could be ramping? And which countries and what’s the timing of when those things — when those facilities could ramp? And then also, you talked about this price delta between Chinese and non-Chinese polysilicon pricing. Can you talk about what the magnitude of that premium is? A few — a couple of months ago, I think it was something around $10 delta. What is the non-China poly price now? And do you expect that difference to maintain? Or do you think that could get closer over time?
