Effect of US Duties on Taiwan Cell Manufacturers
Taiwanese solar cell producers have been the worst affected victims of the US sanctions on Chinese and Taiwanese made solar cells. Big Taiwanese companies such as Motech, Gintech and NeoSolar were seeing large sales growth, as Chinese panel producers outsourced cell production to Taiwan in order to escape US anti-dumping duties on Chinese made solar cells. However, with the revised US ruling also roping in Taiwanese cell producers, times have become difficult as these companies have lost out in the world’s 3rd largest market. While Taiwanese producers have tried to make up with sales to Japanese biggies such as Sharp and Kyocera, they have been hurt as solar cell prices have plummeted by more than 10% this year. All the companies reported large losses with some even reporting losses on the gross margin level. Taiwan is the biggest producer of solar cells after China.
Some of the Taiwanese companies are looking to move to Malaysia and Thailand in order to become competitive again. These are thinking of moving the cell making equipment to new factory shell in other low cost SE Asian countries. The US duties have not helped solar industry, but only increased costs of customers as well as decreased the marketshare of Taiwan. Chinese companies are still dominant as they outsource manufacturing to other cell locations such as India, Korea etc.
Google+Gintech reports negative 8% gross margin in Q314
Crystalline silicon solar cell maker Gintech Energy has released its financial results for third-quarter 2014, recording consolidated revenues of NT$2.905 billion (US$95.9 million), gross margin of -8.07%, net operating loss of NT$410 million, net loss of NT$437 million and net loss per share of NT$1.08.
