Taiwanese solar cell makers are expected to feel the pinch of sluggish demand this quarter as prices fall below cost amid deep cuts in government subsidies in Europe, a Taipei-based market researcher said in a weekly report.
However, local polysilicon suppliers and solar system installation service providers will be less affected by the industry slump and could remain profitable this quarter, TrendForce Corp (集邦科技) said on Wednesday.
INTO THE RED
Solar cell makers are expected to drift into the red this quarter as they bear the brunt of a sharp decline in demand and prices.
“The second quarter will be a trying period for solar cell companies because of lackluster prospects,” TrendForce said. “It is highly possible that the price will drop further to below US$1 per watt as there are no signs indicating a recovery soon after prices fell to near the cost level of US$1 per watt.”
To minimize price erosion, solar cell manufacturers such as Motech Industries Inc (茂迪), Gintech Energy Corp (昱晶) and Solartech Energy Corp (昇陽光電) have cut output to cope with sagging demand, driving down their factory usage to about 80 percent, which means higher cost per unit because of heavy equipment depreciation, the researcher said.
PRICES PLUNGE
TrendForce said the price of solar cells plunged 5.66 percent to an average of US$1.034 per watt this week from a week ago, with the lowest price hitting US$0.9 per watt. Prices had plunged 2.92 percent the previous week.
Motech, the nation’s biggest solar cell maker, said last week it expected solar prices to slide slightly this quarter from last quarter.
PROFITS DECLINE
The company reported its smallest quarterly profits for the first quarter at NT$680 million, a decline of 53 percent from the NT$1.46 billion profit in the final quarter of last year. Gross margin plummeted to 12.5 percent, the lowest in five quarters, from nearly 20 percent.
Shares of Motech, Gintech and Solartech yesterday dropped 1.4 percent, 2.59 percent and 4.21 percent respectively to NT$105.5, NT$75.2 and NT$63.7.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS