Some first-tier Taiwan-based makers of crystalline silicon solar cells, viewing that demand in Europe is likely to rebound in the third quarter because Germany has decided not to cut feed-in tariffs and some PV installation projects in Italy have to be finished by the end of 2011, expect orders to continually increase to full capacity in August, according to industry sources.
Most Taiwan-based solar firms indicated the signs of returned demand in their recent shareholders meetings. Gintech stated the return of demand will be fast and furious, while Solartech expects capacity utilization to return to the 70-80% level. Neo Solar Power and Motech both reported increased May revenues.
According to industry observers, solar cell makers expect August to be the point of time for capacity to be fully utilized. Nevertheless, industry observers added, it is still difficult to know exactly how strong the return would be and if there are any chances for the high inventory to be decreased.
During the bleak second quarter, many clients have refused solar cells with conversion efficiencies less than the range of 16.4-16.8%. If clients continue to hold such requirements for the third quarter, firms failing to meet them are unlikely to have satisfying utilization rates.
Article translated by Jackie Chang
