First-tier China-based PV module firms have plans to set up overseas production lines to avoid US antitrust taxation, for which the US Department of Commerce is set to review a proposed increase, according to industry sources in Taiwan.
The US Department of Commerce will soon determine whether the anti-dumping and anti-subsidization tariffs for China-made PV modules should be raised as demanded by the US International Trade Commission. China PV module makers have been paying an average rate of 30% in such tariffs since 2012.
Some leading China-based PV modules makers plan to set up overseas moduel and cell production lines with an estimated total annual capacity of 2GWp, to avoid the tariffs, the sources said.
According to international PV equipment suppliers, first-tier China-based PV module makers have talked with them about setting up overseas production lines but have yet to place orders.
As the US PV market will have estimated demand for 7GWp in total installation capacity in 2015 and US- and Europe-based makers together can supply 3GWp, there will be a large gap in supply which is attractive to China-based makers, the sources indicated.