Chinese solar panel manufacturers flooded the US market with their products at the end of last year in anticipation of potential duties on those products, a coalition of US solar manufacturers said on Wednesday, a charge that some top Chinese companies rebutted.
The Coalition for American Solar Manufacturing (CASM), led by the US arm of German panel maker SolarWorld AG, said Chinese manufacturers, including Suntech Power Holdings Co Ltd (尚德) and Trina Solar Ltd (天合光能), have more than doubled shipments of solar cells and modules.
Citing data from the US Customs and Border Protection’s Port Import Export Reporting Service, the coalition said Suntech imports rose 76 percent in November compared with the previous month. It said Trina’s imports rose 209 percent in the first half of last month compared with the first half of November.
“This significant increase in imports demonstrates that the Chinese know they have violated US and international trade rules and are trying to evade the consequences,” SolarWorld Industries America president Gordon Brinser president said in a statement.
Suntech and Trina Solar cited a change in a key US government program for solar installations at the end of last year for the year-end surge. The program had paid solar developers a cash grant of 30 percent of the cost of new products. This year it has become a tax-benefit program that allows solar power plant developers to deduct 30 percent of a project’s cost from their taxes over several years.
“Strong US market demand in the fourth quarter was driven largely by the anticipated expiry of the cash grant program,” a Suntech spokesman said. “Suntech continues to grow steadily with the US solar industry, and in 2011 we maintained our leading market share.”
A Trina Solar spokesman said the company was opposed to any suggestion that its US imports surged as the result of efforts to evade potential tariffs.
“Further, due to production cycle and delivery logistics, it’s an established industry pattern to see the majority of any quarter’s shipments occurring in the last month,” the spokesman said.
CASM also said Miami-based importer Sun Electronics brought in 31,000 Chinese solar laminates on a single day last month, accusing the privately-held company of stockpiling imports.
The shipment consisted of “at least 77 shipping containers,” the statement said.
Sun Electronics could not be reached for comment.
SolarWorld Industries and six other US solar companies, which have chosen to remain anonymous, have accused Chinese competitors of receiving illegal government subsidies and selling their products in the US at unfairly low prices.
The companies in October filed a case asking the US Commerce Department to set duties of more than 100 percent on Chinese-made solar cells and panels. Another coalition of US solar companies opposes duties, saying they would threaten 100,000 jobs in the industry by driving up prices and depressing demand.
The US International Trade Commission voted last month to allow the case to proceed and for the Commerce Department to announce preliminary duties this year.
A preliminary decision is expected on Feb. 13.
CASM’s statement comes a day after President Barack Obama said in his annual State of the Union speech that he was creating an enforcement unit to crack down on unfair trade practices in China and other countries.
He did not mention the solar panel case specifically, but urged Congress to pass tax credits to create more US clean energy jobs.
DECOUPLING? In a sign of deeper US-China technology decoupling, Apple has held initial talks about using Baidu’s generative AI technology in its iPhones, the Wall Street Journal said China has introduced guidelines to phase out US microprocessors from Intel Corp and Advanced Micro Devices Inc (AMD) from government PCs and servers, the Financial Times reported yesterday. The procurement guidance also seeks to sideline Microsoft Corp’s Windows operating system and foreign-made database software in favor of domestic options, the report said. Chinese officials have begun following the guidelines, which were unveiled in December last year, the report said. They order government agencies above the township level to include criteria requiring “safe and reliable” processors and operating systems when making purchases, the newspaper said. The US has been aiming to boost domestic semiconductor
Nvidia Corp earned its US$2.2 trillion market cap by producing artificial intelligence (AI) chips that have become the lifeblood powering the new era of generative AI developers from start-ups to Microsoft Corp, OpenAI and Google parent Alphabet Inc. Almost as important to its hardware is the company’s nearly 20 years’ worth of computer code, which helps make competition with the company nearly impossible. More than 4 million global developers rely on Nvidia’s CUDA software platform to build AI and other apps. Now a coalition of tech companies that includes Qualcomm Inc, Google and Intel Corp plans to loosen Nvidia’s chokehold by going
ENERGY IMPACT: The electricity rate hike is expected to add about NT$4 billion to TSMC’s electricity bill a year and cut its annual earnings per share by about NT$0.154 Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has left its long-term gross margin target unchanged despite the government deciding on Friday to raise electricity rates. One of the heaviest power consuming manufacturers in Taiwan, TSMC said it always respects the government’s energy policy and would continue to operate its fabs by making efforts in energy conservation. The chipmaker said it has left a long-term goal of more than 53 percent in gross margin unchanged. The Ministry of Economic Affairs concluded a power rate evaluation meeting on Friday, announcing electricity tariffs would go up by 11 percent on average to about NT$3.4518 per kilowatt-hour (kWh)
OPENING ADDRESS: The CEO is to give a speech on the future of high-performance computing and artificial intelligence at the trade show’s opening on June 3, TAITRA said Advanced Micro Devices Inc (AMD) chairperson and chief executive officer Lisa Su (蘇姿丰) is to deliver the opening keynote speech at Computex Taipei this year, the event’s organizer said in a statement yesterday. Su is to give a speech on the future of high-performance computing (HPC) in the artificial intelligence (AI) era to open Computex, one of the world’s largest computer and technology trade events, at 9:30am on June 3, the Taiwan External Trade Development Council (TAITRA) said. Su is to explore how AMD and the company’s strategic technology partners are pushing the limits of AI and HPC, from data centers to