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South Korean Chaebols Samsung and LG entry into solar energy promises to shake up the Competition

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Samsung plans for Leadership position in Future Green Industry

Samsung had recently announced a shift in strategy with a major push towards Green Industry.It is now firming up its plan in the Solar Energy space with plans to  up a huge capacity using Crystalline Solar Technology.Samsung is a global leader in the Semiconductor area which it is trying to reinforce by huge capital expenditure.Samsung has strong expertise in the areas of LCD and Memory manufacturing and technology, which it can easily leverage to develop Solar Thin Film technology.However,Samsung is focusing its efforts on high efficiency Crystalline Solar Technology.It is doing so in a greenfield manner rather than through Acquisitions and Joint Ventures like the Taiwan semiconductor companies.

Samsung Electronics reveals solar manufacturing strategy – PV-Tech

“Currently we are focusing on the crystalline silicon business, especially on the monocrystalline silicon,” noted Changsik Choi Executive Vice President, Samsung Electronics, Solar Energy Business Team.Choi said that Samsung was targeting the high-efficiency cell space but instead of offering a premium priced product, it has focused on tapping into its LCD and semiconductor processing knowhow to produce high-efficiency cells at low cost. The Samsung Electronics executive made it clear that its focus for 2010 would be to gain acceptance from key customers for its cell technology. Choi said that it planned to spend US$6 billion over the next 10-years to build and expand manufacturing capacity to “several gigawatt in the near future,” though declined to be more specific.

South Korean Companies Investing in Green Energy

The South Korean government is very serious about supporting Green Energy providing the biggest Stimulus Package towards Clean Technology as a percentage of total Stimulus spending.LG, the other Electronics Giant has also firmed up its plan in the Solar Energy Space.It is already selling solar modules in the South Korean and European markets and plans to have a 240 MW capacity by 2010 end .This will be rapidly expanded to a Gigawatt capacity by 2012.Other South Korean Chaebols like Hyundai,SK Energy are also investing heavily in Green Technology.

LG Electronics to Spend 1 Trillion Won on Solar Cells by 2015 – Bloomberg

LG Electronics Inc., South Korea’s second-largest electronics maker, plans to invest 1 trillion won ($828 million) by 2015 in its solar cell business.The Seoul-based company aims to generate revenue of 3 trillion won by 2015 and boost production capacity to almost 1 gigawatt within three years, from 240 megawatts at the end of this year, according to a statement today.

The entry of the South Korean and Taiwanese biggies like LG,Samsung,TSMC,AUO and others will seriously increase the competition in the already crowded Solar Industry.The industry is already faced with potential oversupply despite rapid increase in 2010 solar demand.With the European countries like Spain cutting solar subsidies,there are bound to be questions on how this still nascent industry can accommodate so many companies.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in or call me on +913340606492.

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