Taipei, Friday, September 30, 2016 15:02 (GMT+8)
mostly sunny
Taipei
29°C
Commentary: China solar firms in hunger game in domestic market
Jackie Chang, DIGITIMES, Taipei [Monday 9 April 2012]

China-based solar firms have been beating peers around the world with its low product costs. However, competition among the China-based makers in the domestic market is a different game. Comparing with Europe- and US-based firms, China-based solar firms have strong competitive advantages such as low costs and support from the government. But once the firms have to compete with one another in the domestic market, the game has becoming "a hunger game."

China's domestic solar market is a playing field that has been leveled for China-based solar giants. The less competitive firms in China have been suspending productions due to low demand in 2011. Hence the battle is solely between large-size, vertically integrated solar firms.

The debate over vertical integration has been ongoing in the solar industry. China-based firms have been aggressively integrating from polysilicon to solar modules in hope to avoid being hijacked by firms in other countries. Some even have gone as far as developing and financing projects in the international market. With prospects in Europe starting to look bleak, China-based firms have been shifting their focus back to the domestic market.

Some research institutes predict that China is soon to be the second largest solar market in the world, beating Italy.

Now may be a good time to see the true competitive advantages of China-based solar giants as they fight over the domestic market and compete with each other. Nevertheless, China's solar industry may need to find ways to lower its dependence on imported polysilicon from international firms because as long as international firms control the supply of solar materials, solar firms in China may find their hands tied by foreign firms.

Ties with the government are also crucial for a business to succeed in China, and may become the key factor for the winner.

Realtime news
  • Digitimes Research: Cellular IoT may have limited opportunities for mobile telecom carriers

    Mobile + telecom | 3min ago

  • BASF to expand capacity

    IT + CE | 16min ago

  • TAICS to cooperate with US TIA on 5G, IoT

    Mobile + telecom | 36min ago

  • China-based Lianluo to take up a majority stake in Newegg, says report

    IT + CE | 2h 48min ago

  • Anpec, GMT set to report revenue growth for 3Q16, says report

    Before Going to Press | Sep 29, 21:55

  • LG Chem to launch 2nd-generation batteries for electric vehicles, says report

    Before Going to Press | Sep 29, 21:53

  • 25 million Ultra HD TV panels shipped globally in 1H16, says Sigmaintell

    Before Going to Press | Sep 29, 21:51

  • Oppo aims to ship 130-140 million smartphones in 2017

    Before Going to Press | Sep 29, 21:50

  • Quanta Cloud Technology opens marketing office in Germany

    Before Going to Press | Sep 29, 21:46

  • TWTM 2016 taking place in Taipei

    Before Going to Press | Sep 29, 21:41

  • Semi equipment maker Foxsemicon vying for orders for OLED panel manufacturing

    Before Going to Press | Sep 29, 21:40

Pause
 | 
View more
UMC
Intel strategies in the mobile device market
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.