N-type mono-crystalline solar cells have high production costs, making them less competitive. Nevertheless, China-based firms have been eager to enter the market.
The cost of N-type mono-crystalline solar cells is high due to immature technology and lack of skill allowing firms to begin mass production. In addition, equipment costs are also high which is unattractive for firms that are currently evaluating production of N-type mono-crystalline solar cells. Furthermore, upstream N-type mono-crystalline solar wafers also lack competitive pricing.
China-based solar firms have been eager to break through such entry barriers and hope to expand distribution channels.
Taiwan-based AU Optronics (AUO) has been investing in Japan-based M.Setek, the world's biggest N-type mono-crystalline solar wafer provider with customers such as US-based SunPower and Japan-based Panasonic. But due to limited demand, M.Setek has been expanding upstream into polysilicon and has yet to expand capacity for its N-type mono-crystalline solar wafer production.
China-based firms such as the solar subsidiary of Zhonghuan Semiconductor, Longi Silicon Material, Comtec and Solargiga have been developing N-type mono-crystalline solar products and have been seeing breakthroughs in pricing and distribution.
