Oversupply in the downstream solar market has been causing the supply of crystal growing furnaces to exceed demand by 100%. In addition, cheap second-hand equipment has been available to solar firms. Nevertheless, despite the availability of cheap equipment, the best way for solar wafer firms with high capacity utilization rates to expand capacity is to rent capacity from peers or issue OEM orders, according to solar wafer makers.
Some equipment firms are hoping to enter the business of equipment leasing. Solar wafer makers noted that renting new equipment is relatively cost effective but building new plants add costs, hence it is easier to just rent capacity, which gives firms more flexibility to adjust to market conditions.
Solar equipment firms have been facing rising inventory due to low demand as downstream firms halt their expansion plans.
