Revenues Jump 69.6 Percent From Same Period in 2007 on Strong Demand From Europe and Increases in Average Selling Prices TAIPEI, Taiwan and SAN FRANCISCO, Sept. 18
TAIPEI, Taiwan and SAN FRANCISCO, Sept. 18 /PRNewswire/ -- Taiwan's
manufacturers of solar cells used to generate electricity reported revenues in
the first half of 2008 that soared by 69.6 percent from the same period a year
ago on strong demand from European nations such as Spain and Germany.
Six of the solar cell makers listed on Taiwan's stock exchange reported
first half 2008 revenues of NT$35.6 billion (US$1.1 billion) compared with
NT$21 billion in the same period a year ago, based on information the
companies provided to the stock exchange authorities.
The companies are Motech Industrial Inc., Gintech Energy Corp., E-Ton
Solar Tech, Sino-American Silicon Products Inc., Sinonar Corp. and Green
Energy Technology. Motech, Gintech and E-Ton are among the world's ten largest
solar cell makers by revenues.
Demand for solar cells and other sources of alternative energy has taken
off after prices of oil soared the past 12 months. Governments in Europe and
Japan have subsidized the installation of solar energy facilities. Demand for
solar cells in the first half of this year has helped to boost average selling
prices (ASPs), according to analysts who cover the companies.
"There has been an increase in ASPs due to supply constraints and strong
demand from Spain," said Daiwa Securities analyst Pranab Kumar Sarmah. "There
has also been a strong output ramp for a few new entrants such as Gintech."
Sarmah expects the next U.S. president to decide on a new Federal Income
Tax Credit (ITC) for solar systems, which expires at the end of this year.
Residential users may delay purchases until the new ITC is in place, and
pent-up demand has the potential to explode from the second half of 2009,
assuming the new president provides similar or better federal incentives, he
adds.
Still, demand may slow during the rest of this year if some European
nations cut subsidies, analysts say.
"While many seem to recognize the potential market impact from the reduced
subsidy in Spain, industry players are still optimistic on the long-term
growth prospects, which we agree with," says Citigroup Global Markets analyst
George Chang.
This year, the solar cell manufacturers have been the best performing
segment in Taiwan's high technology industry, which includes companies making
everything from semiconductors, flat-panel displays, computers, mobile phones
and digital music players, analysts say.
The strong outlook for the industry is attracting more investment and
manufacturers in Taiwan's solar cell business.
Green Energy Technology, which makes silicon wafers that are used as a
basic material in solar cells, announced on Sept. 1 it won annual orders worth
of euro39.86 million (US$58.77 million) to supply thin-film solar modules to
Germany and Spain next year. The company has been cooperating with Applied
Materials of the U.S. to develop a new 8.5 generation thin-film solar
production line in Taoyuan that can produce large 2.2m x 2.6m thin-film
modules with a power output of 343W per unit.
Applied Materials is the world's largest supplier of equipment used to
make semiconductors, flat-panel displays and solar cells. The company in July
broke ground for expansion of its Taiwan Manufacturing Center to meet demand
for flat-panel display and solar cell manufacturing equipment. The company
estimated the investment to be worth about US$17 million.
Taiwan Glass Industrial Corp. said earlier this year that starting in
August, it would invest US$11.9 million to start production of special glass
used in the production of solar cells. By 2012, the value of Taiwan's solar
industry production may reach NT$500 billion as the government promotes the
use of sources of energy alternatives besides oil, according to Taiwan Premier
Liu Chao-shiuan.
Taiwan should endeavor to develop green environmentally friendly
industries and high value-added knowledge-intensive industries, the Taiwan
Environmental Protection Administration said in a statement on its website.
The government has helped to fund investments in solar cell research and
technology as it aims for foster development of this new industry.
Motech Industrial Inc.
http://www.motechind.com/
Gintech Energy Corp.
http://www.gintechenergy.com/
E-Ton Solar Tech
http://www.e-tonsolar.com/company.htm
Sino-American Silicon Products Inc.
http://www.saswafer.com/index/index_tw.aspx
Sinonar Corp.
http://www.sinonar.com.tw/
Green Energy Technology
http://www.getinc.com.tw/
Please visit http://www.taiwantrade.org.tw or
http://www.brandingtaiwan.org for more information.
Taiwan External Trade Development Council (TAITRA)
The Taiwan External Trade Development Council (TAITRA) was founded in 1970
to promote Taiwan's foreign trade and competitiveness in world markets. Over
the past 38 years, TAITRA has played a key role in the development of the
Taiwan economy. TAITRA is jointly sponsored by the government and commercial
associations and is viewed by all as the business gateway to Taiwan for the
international business community.
SOURCE Taiwan External Trade Development Council
