Manufacturing News

Taiwanese Solar Cell Makers to Benefit From China's Move to Build More Solar Plants

With Japan's nuclear radiation crisis causing more attention to renewable energy, Taiwan's solar cell makers are expected to benefit from China's 12th Five-Year Development Plan calling for the nation's solar power generation capacity to hit 10 gigawatts in 2015.

According to Chinese press reports, the Chinese government has decided to slow development of nuclear power in response to the recent nuclear radiation problem in Japan, and, instead, will build more solar power plants nationwide as part of its 12th Five- Year Development Plan to accelerate replacement for nuclear power. The plan to increase solar power generation in China is expected to make Taiwan's suppliers of solar cells more easily tap the huge Chinese solar power market.

Among them, Motech Industries Inc. has built sound production lines in Kunshan City, southeastern China, and has achieved low defect rates in production and high power transmission efficiency of solar cells. The company earns one-third revenue from its Kunshan plant, and will see the contribution ratio shoot up along with more solar panels installed in China.

Also eyeing the huge business potential in China, DelSolar Co. (a subsidiary of Taiwan's leading power supply producer Delta Electronics Inc.), Solartech Energy Corp., and Tainergy Tech Co. all have actively moved to deploy operations in China over the past year. DelSolar and Solartech's solar cell plants there have been operational presently, while Tainergy's will be activated in May.

However, market observers noted that PanJit International Inc. will emerge as the biggest winner in the competition landscape, given the fact that the firm's reinvested Aide Solar Energy Technology Co., Ltd., located in China's Jiangsu Province, turned out 120 megawatts of solar cells and 450 megawatts of solar modules in 2010 as the largest among Taiwanese solar cell makers operating in China.

The observers indicated that Aide Solar has garnered several official tenders for solar panel installations in China's eastern provinces, which will be kicked off continually this year and help the firm with increasing economy of scale in production to hold on to the lead. The firm's annual output of solar cells and solar modules is estimated to surge to 360 megawatts and 630 megawatts, respectively, this year.

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