In view of increasing competition from China-based firms, Japan-based PV module vendors have been in talks with Taiwan-based solar cell makers about OEM production for 2015, according to industry sources.
Japan-based PV module vendors have been outsourcing production to China-based makers mainly for supply in the Japan market, but some China-based makers have also been selling their own-brand modules to compete with their clients in Japan, according to the sources with Taiwna's PV industry.
Japan-based PV module vendors originally procured Taiwan-made solar cells to make own-brand modules but have adjusted the model by releasing OEM orders to China-based PV module models to minimize production cost since 2013, the sources said.
Some of these China-based PV module makers have offered own-brand models in the Japan market, with prices significantly lower than competitions from the local vendors. The pricing advantage has allowed China's own-brand PV module makers to win supply contracts for many ground-mounted power-generating stations to be installed in Japan and competition has extended to the rooftop segment, bringing increasing pressure on Japan-based vendors, the sources indicated.
Japan-based vendors think that they will eventually compete with China-based firms in the international market and therefore plan to resume procurement of Taiwan-made solar cells for in-house PV module production, the sources said.
