Taiwan is expected to become the world’s No. 2 supplier of silicon solar cells this year, benefiting from increased manufacturing orders from European customers and recovering demand for solar cells, a Taipei-based research firm said yesterday.
This year, shipments of Taiwanese silicon solar cells, led by Motech Industries Inc (茂迪), may grow 1.6 times from last year to 1.78 gigawatts, Market Intelligence and Consulting Institute (MIC, 產業情報研究所) predicted.
Last year, Taiwan ranked No. 4 among the world’s silicon solar cell suppliers with a 12 percent market share. Taiwanese companies now have a chance to overtake Japan, or Germany, the world’s No. 2 and No. 3 silicon solar cell exporters respectively this year, MIC forecast.
“A sharp decline in the average selling price during the financial crisis drove costs higher for European cell makers, who are now under increasing pressure to farm out production to Asian manufacturers,” said MIC analyst Sean Kao (高鴻祥) in a report released yesterday.
“And Taiwanese solar cell makers, who have the advantage of quality and pricing [over rivals], are greatly expanding capacity to cope with [rising orders],” Kao said.
The global solar market is expected to grow quickly and solar panel builders may see an increase in purchases as countries such as Italy, France, the Czech Republic and the US follow Germany’s lead and announce subsidies, Kao said.
Governments in Japan and China have also started to provide subsidies for solar panels, further increasing demand, he added.
There are also more large-scale electronics makers entering the market, which is facilitating the development of the nation’s solar power industry, he said.
Companies such as flat-panel maker AU Optronics Corp (友達光電), power supply device maker Lite-On Technology Corp (光寶科技) and the world’s top contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) are entering the market by establishing new companies or through investing in existing players.
With a cash injection from the nation’s largest electronics companies this year, Taiwan’s solar cell makers will be able to enhance their competitiveness by improving manufacturing capabilities, global logistic systems and brand equity, enabling them to compete with Chinese rivals, Kao said.
Motech is setting an example after they obtained an NT$6.2 billion capital infusion from TSMC, which helped them to catch up with rival Gintech Energy Corp (昱晶) this year.
Shares of Gintech and Motech soared 5.9 percent and 1.93 percent to end at NT$91.5 and NT$100.5 respectively, yesterday, out-performing the benchmark TAIEX, which gained 1.06 percent.
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