Shortly after Mosel Vitelic announced they will be raising capital to expand into the photo-voltaic field, China Economic News (CENS) also reports Unitech PCB, Big Sun Energy and Sintek will also focus on solar cell production. According to CENS:
Director board of chipmaker Mosel-Vitelic Inc. recently passed a motion to issue 228 million units of Global Depository Receipt (GDP) to raise capital for expansion in photovoltaic field.
The amount of the capital to be raised is estimated at NT$6.3 billion (US$210 million at US$1:NT$30) given an average NT$27 of the company`s share price in recent weeks.
Digitimes reports Mosel Vitelic is already producing solar cells and has broken ground for a new solar cell plant that will be at full capacity during 2009.
Mosel Vitelic has broken ground for a new solar cell plant, which is scheduled for completion in the first half of 2009 with a total capacity of 200 MWp.
According to the company, solar cell capacity at its existing fab will be expanded to 60MWp in July this year. Of the 200 MWp capacity at the new plant, half will be operational in the third quarter this year, with the other half to come online in the first half of next year.
Mosel Vitelic president has said they are rapidly expanding their production capactiy to reach economies of scale and increase their profit margins. CENS says:
The company (Mosel Vitelic) is running a 30-megawatt production line, which is funneling around NT$200 million (US$6.6 million) into its revenue every month.
And Digtimes notes:
The solar cell business currently accounts for 50% of the company's revenues, but the proportion is expected to increase to more than 60% by the end of this year, the company said.
CENS says this rapid expansion is currently inline with other solar cell manufacturers. According to CENS:
Industry watchers pointed out that burgeoning solar-energy market has inspired the insiders to launch bold expansions. Since early this year many Taiwanese photovoltaic manufacturers have announced aggressive capital-raising plans, with Gintech Energy Corp. scheming to raise around NT$10 billion (US$333 million) through syndicated loans and capital increasing, as well as Moteck Industries Inc. and Neo Solar Power Corp. mulling to raise capital through syndicated loans and capital increasing.
Yesterday CENS reported the Letzer Industrial Park is set to become the major supply base for Taiwan`s solar cells:
Actively engaged in production of solar cells, the Taiwan-based Unitech Printed Circuit Board Cop., Big Sun Energy Technology Inc. and Sintek Photronic Corp. all plan to continue focusing on solar cell production and development in Letzer Industrial Park of Yilan County, northeaster Taiwan, according to company sources.
Letzer Industrial Park management said that the park has successfully signed on investment valued at NT$104.5 billion by the end of the first quarter of this year, with more than NT$800 billion from solar cell makers. Optimistically, the park is expected to become Taiwan`s major supply base for solar cells soon.
Taiwan is set to become a major player in the solar cell industry worldwide. I remember reading an article in 2004 saying how Taiwan's expertise in IC chip manufacturing is transferrable to solar cell manufacturing. Since Taiwan is the clear global leader in IC chip manufacturing there is no reason why they cannot become significant competitors in this field too.
One of the biggest problems for this industry however is the shortage of polysilicon, the material used to manufacture solar cells. Digitimes noted Simon Tsuo's (Motech chairman) comments on the current supply situation:
Despite there being more than 30 new polysilicon makers in China, very few of them have actual output, Tsuo noted. Since many of these suppliers have secured contracts with solar cell makers and are scheduled to start shipments in 2009, any unexpected schedule delay will severely affect global polysilicon production value, he said. As solar cell makers have to pay a deposit for material supply, the delay will also affect their funding operations, he noted.
The solar cell industry is set for growth. The need to find alternative energy sources and to start leveraging non-intrusive energy production methods are providing an impetus to the industry and big business opportunities to many people. There is no doubt a lot of money to be made in this game. However, as Mr. Tsuo observed, there are also many risks. The strategic management of resources and raw material supply chains is increasingly important in this industry and if companies are unable to secure the polysilicon needed for production then they will face big problems.
Hopefully this industry can grow and better ways of powering our homes and day-to-day electronic applications will become increasingly evident.
Article 1: Mosel-Vitelic to Raise Capital for Photovoltaic Deployment
Article 2: Mosel breaks ground for 200MWp solar cell plant
Article 3: Unitech PCB, Big Sun Energy and Sintek Focus on Solar Cell Production
Article 4: Solar industry full of uncertainties in 2009, says Motech chairman
Article 5: Global warming sparks polysilicon crunch