Business | April 11, 2012
Solar manufacturers: Lesson learned
Lesson learned, solar manufacturers no longer slashing price to bring In orders.
According to EnergyTrend, a research division of TrendForce, slowed demand on the German market, the uncertainty towards the future market in Italy, and unclear demand in other regions has resulted in fewer deals on the spot market. However, the situation is an improvement over last year – as manufacturers are no longer blindly slashing price to bring in orders, spot price is stable. Related vendors indicate, with the current price trend, it is unlikely that wafer and solar cell makers will be able to avoid losses – thus, minimizing losses is the issue at hand. Manufacturers point out the lesson learned last year: when demand is weak, steep price cuts will not necessarily secure orders, and may even bring high risk to all manufacturers’ operations. TrendForce indicates, during China’s mini Golden Week in early April, many Chinese manufacturers went to Taiwan to negotiate outsourced orders. Most manufacturers are setting last year’s prices as their low – currently there has been no news of makers agreeing to orders at rates lower than last year’s, resulting in a repeat of an unfortunate situation: the more produced, the more losses suffered. As the rapidly declining price approaches last year's low and market demand in sluggish, before Italy's subsidy cuts are finalized and there is a rush to install, the outlook for the solar industry is gloomy. TrendForce interviews indicate, the European market is waiting for the final decision on Italy's solar policy, while manufacturers for the North American market indicate that the proportion of China's manufacturing outsourced to Taiwan is currently low. The Chinese makers are maintaining shipment flexibility in preparation by outsourcing a portion of production for upcoming changes. As the U.S. anti-dumping decision and Italy's new subsidy policy will be revealed in Q2, TrendForce expects more changes will take place in the second half of April. As for this week’s spot prices, although market demand continues to be sluggish, polysilicon makers are asking clients to fulfill their contracts. Therefore, wafer and solar cell manufacturers continue to clear excess materials. However, due to inventory stocking costs, selling price has not changed much. This week’s lowest polysilicon price stayed at US$22/kg, while ASP fell to US$23.74/kg, a decrease of 0.25%. In terms of silicon wafers, buying momentum has clearly decreased on the multi-Si wafer market, but Chinese manufacturers have maintained high capacity utilization rates, resulting in a significant decrease in this week’s spot prices. Average multi-Si wafer price fell to US$1.081/piece, a 1.99% decrease, while average mono-Si wafer price was flat. As for solar cells, since manufacturers have not cut price to bring in orders, this week’s prices changed only slightly. Average solar cell price was US$0.475/Watt, a decrease of 0.42%. With regard to solar modules, affected by significantly reduced price quotes on the China market, this week’s solar module price showed significant adjustments. Solar module price fell below the US$0.8/Watt mark, arriving at US$0.788/Watt, a decrease of 4.14%. Impacted by the solar module price decline, thin film price fell as well, arriving at US$0.761/Watt, a 3.43% decrease.
Cree, STMicroelectronics fortify SiC agreement Cree Inc. and STMicroelectronics have expanded their existing multi-year, long-term silicon carbide wafer supply agreement to more than USD 500 million.
LPKF expands in Garbsen, Germany The laser specialist has started the construction of a new clean room factory for the production of glass microstructure components at its headquarters in Garbsen, Germany.
Cree, ABB form partnership for SiC technology Silicon carbide technology specialist Cree and ABB’s Power Grids business have announced a partnership to jointly expand the rollout of silicon carbide for semiconductors.
Soitec & Applied Materials to develop next-gen SiC substrates Designer and manufacturer of semiconductor materials, Soitec, is entering a joint development program with Applied Materials on next-generation silicon carbide substrates.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Swissbit to stay on top of demand with new Berlin fab Back in late July of 2018, Swissbit AG, broke ground on its new R&D and manufacturing facility in Berlin with the aim of tripling the production capacity of location. Now its already up and running.
Nuvia closes series A, eyes data center servers Santa Clara semiconductor design startup Nuvia Inc., formed earlier this year by three former top Apple Inc. design executives, has closed its series A round with USD 53 million secured.
Ingun's going global; expands in Latin America and Eastern Europe Benjamin Sontag (INGUN Prüfmittel GmbH) gave a short update on expansion plans in Latin America and Eastern Europe.
Yageo to acquire KEMET in a $1.8 billion deal Yageo Corporation and KEMET Corporation have entered into a definitive agreement under which Yageo will acquire all of the outstanding shares of KEMET’s common stock for USD 27.20 per share in an all-cash transaction valued at USD 1.8 billion.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
EVG and DELO partner to expand materials and process capabilities Supplier of wafer bonding and lithography equipment for the MEMS and semiconductor industry, EV Group (eVG), is partnering with DELO, a manufacturer of industrial high-tech adhesives, in the area of wafer-level optics.
Osram recommends current takeover offer from ams Osram says it has concluded a business combination with Austrian chipmaker ams and is recommending its shareholders to accept the current takeover offer.
EpiWorld speeds up commercialisation of SiC devices with AIXTRON AIXTRON SE has provided an AIX G5 WW C system to EpiWorld International Co., Ltd for the further development of next generation silicon carbide (SiC) epitaxial wafers mainly used for the manufacturing of power devices for automotive applications.
FlexEnable makes acquisition for flex displays FlexEnable, developer of flexible organic electronics, has purchased Merck's portfolio of high-performance organic thin-film transistor (OTFT) materials.
Sponsored content by Z ElektronikaZ Elektronika opens new factory in Pécs To keep up with rapid growth of the company, on the 13th September Z Elektronika celebrated the grand opening of its new electronic design and manufacturing facility close to the highway in Pécs, Hungary, which adds new features and production site to its nearby location.
Samsung’s CPU project ends, layoffs in CA and TX Samsung has confirmed in a letter to the Texas Workforce Commission that layoffs as a result of the closure of the CPU project at the Samsung R&D Center (SARC) in Austin, Texas and the San Jose Advanced Computing Lab (ACL) in San Jose, California, will begin December 31.
Marvell completes acquisition of Avera Semi Marvell has completed its acquisition of Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GlobalFoundries.
IAR Systems opens office in Taiwan Swedish IAR Systems, a supplier of software tools and services for embedded development, says the company is expanding in Asia with the opening of an office in Taipei, Taiwan.
ZF and Cree partners up to advance the electric drive ZF Friedrichshafen is teaming up with silicon carbide semiconductor specialist Cree, to create industry-leading, highly efficient electric drivelines.
Broadcom completes acquisition of Symantec Enterprise Security business Semiconductor company Broadcom, says that the company has completed its acquisition of the Enterprise Security business of Symantec Corporation
AVX acquires Chengdu OK New Energy AVX Corporation says it has completed the purchase of Chengdu OK New Energy, Ltd. (COKNE).
Vesper names new SVP of worldwide sales & business development MEMS sensor company Vesper, announces that Lorenzo Ponzanelli has joined the company as senior vice president of worldwide sales and business development, overseeing sales strategy and execution to drive global growth.
Gigaphoton establishes new company in China Gigaphoton, a manufacturer of light sources used in semiconductor lithography, says it has established and started running the business of a new company – Gigaphoton China Inc. in China.
Prepare, adapt & overcome - how ‘to Brexit’ The looming, but yet unknown, effects of Brexit have forced companies to prepare for whatever may come. But how does one really prepare for unknown consequences?
Acal BFi signs pan-European agreement with Champs Technologies Acal BFi says it has added Champs Technologies to its magnetics portfolio. Acal BFi is a Europe-wide specialist technology supplier and design partner with a specialist portfolio of magnetic cores and inductive components products and services.Load more news