Fri, Feb 29, 2008 - Page 12 News List

Sunny or cloudy skies for solar cell manufacturers?

CONTRASTING VIEWS While Citigroup touted Gintech's and Motech's growth prospects, Taiwan Ratings said aggressive expansion had led to key material shortages

By Kevin Chen  /  STAFF REPORTERS

On top of that, the lack of ability to secure stable supplies of silicon wafers has also forced Taiwanese companies to enter into long-term fixed price contracts with their suppliers, making these companies' financial performance vulnerable to fluctuations in solar cell and silicon wafer prices in the medium term, he said.

"Credit risks are likely to remain high over the next two to three years despite sunny growth prospects for domestic solar cell makers," Hsu said.

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