Solar Firms Have Been Facing Low Demand in 2011

Solar firms have been facing low demand in 2011. As marginalization continues to weed out firms that are less competitive, many non-solar industry leading corporations have been eyeing the right time to enter. Newcomers with strong financial capital, technology and low production costs will accelerate industry transformation. The oversupply problem has triggered a competition for solar products with high conversion efficiencies forcing less competitive firms to temporarily halt production or shut production altogether. Financial pressure has been plaguing the solar industry as well. Many solar firms which have long-term supply agreements with upstream suppliers have seen their competitiveness crippled by the low product prices, which have left them with insufficient cash for daily operations, let alone capacity expansions. Newcomers, on the other hand, are equipped with the latest equipment without long-term supply contracts eating away financial strengths. Large-size international firms such as Intel and France-based petroleum company Total both continue to invest and develop solar related products. Taiwan-based large-size industry leading firms such as Taiwan Semiconductor Manufacturing Company (TSMC), Inventec, and Tatung all have invested in solar firms in Taiwan. Other large-size firms such as United Microelectronics Corporation (UMC), AU Optronics (AUO) and Foxconn Electronics (Hon Hai Precision Industry) are just a few of those who have entered the solar market recently. South Korea-based Samsung and Hyundai are also developing solar products and are seen as tough competitors. Source: www.digitimes.com