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Taiwan-based crystalline silicon solar cell makers are at a substantial disadvantage to directly compete with China-based solar makers because Chin makers have been reducing outsourcing to Taiwan, according to chairman and CEO Sam Hong for Taiwan-based solar cell and PV module maker Neo Solar Power.
China-based PV module makers heavily relied on outsourcing solar cell production to Taiwan-based makers but have gradually set up and expanded in-house production capacities due to large domestic demand, Hong said.
As compared with China-based makers’ solar cell production, Taiwan-based solar cell makers are at a disadvantage in production costs and do not have enough technology advantages for product differentiation, Hong noted. Consequently, China-based PV module makers will only release orders if their own solar cell capacities are insufficient to meet demand, or they are technologically incapable of producing some types of high-efficiency solar cells, Hong indicated. The situation has caused many of Taiwan-based solar cell makers to suffer operating losses for consecutive years, Hong said.
To cope with the unfavorable situation, Neo Solar Power has adjusted operating strategies through phasing out production of polycrystalline solar cells and maintaining production of PERC (passivated emitter and rear cell) monocrystalline solar cells as well as focusing operations on investments in PV power generation projects, Hong noted.
Neo Solar Power chairman and CEO Sam Hong
Photo: Fu Shih-min, Digitimes, May 2017
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