Japan-based PV vendors, due to cost considerations and the depreciation of the Japanese yen, have been shifting from outsourcing solar cells production to Taiwan-based makers for in-house module assembly, to sourcing PV modules from China, according to industry sources.
For Japan-based PV vendors, depreciation of the Japanese yen has led to higher outsourcing costs, the sources noted. In addition, in-house production costs are higher than Taiwan- and China-based fellow makers', the sources said. In order to minimize costs, Japan-based PV vendors have turned to outsourcing PV modules directly to China-based makers, the sources indicated.
Sharp, the largest Japan-based PV vendor, had Taiwan-based makers produce 1.2-1.5GWp of solar cells in total in 2013. Makers included Gintech Energy, Neo Solar Power, Motech Industries and Taiwan Solar Energy, the sources indicated. However, Sharp's outsourcing in Taiwan in 2014 is likely to shrink to 500-600MWp, the sources said.
Currently, China-based ReneSolar, Trina Solar and Solargiga Energy Holdings mainly produce PV modules for Sharp, the sources noted. While Sharp has authorized China-based PV module makers to procure solar cells, most China-based makers have so far given priority to Taiwan-based solar cell makers due to reliable product quality, the sources added.
