AsianFin -- China’s top polysilicon producers are forming a multibillion-dollar fund aimed at shutting down excess production capacity, in the clearest sign yet that the solar industry is moving to curb a deepening oversupply crisis.

Led by companies such as GCL Technology Holdings Ltd., the initiative will raise at least 50 billion yuan ($7 billion) to purchase and retire over 1 million tons of polysilicon capacity, GCL’s Investor Relations Director Jun Zhu said in an interview Thursday.

The plan—under discussion for several months among industry leaders—could eliminate nearly one-third of China’s total polysilicon capacity. The market has been plagued by a prolonged glut, with total capacity reaching 3.23 million tons by the end of 2024, more than double the expected demand this year, according to the China Photovoltaic Industry Association.