Taipei, Friday, July 3, 2015 07:40 (GMT+8)
mostly cloudy
Taipei
31°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
  • LCD monitor shipments drop in 2Q15, says WitsView

    Displays | 9h 22min ago

  • India to overtake US as second-largest smartphone market by 2017, says Strategy Analytics

    Mobile + telecom | 9h 27min ago

  • Xilinx tapes out MPSoC on TSMC 16nm FF+ process

    Bits + chips | 9h 30min ago

  • Globalfoundries completes acquisition of IBM microelectronics business

    Bits + chips | 9h 34min ago

  • Taiwan IC design houses looking for more orders from China handset vendors

    Bits + chips | 10h 48min ago

  • Taiwan IC design houses to see profits shrink in 2015

    Bits + chips | 10h 51min ago

  • Digitimes Research: China makers expanding production for wearable displays

    Displays | 10h 52min ago

  • Garmin to launch first bicycle-use rear-view radar

    IT + CE | 10h 58min ago

  • New iPhone enters production, say Taiwan makers

    Before Going to Press | 11h 7min ago

  • Clevo starts remodeling Buynow chain stores in China

    Before Going to Press | 11h 8min ago

  • Microsoft Taiwan implements BizSpark Plus via cooperation with local business accelerators

    Before Going to Press | 11h 12min ago

  • Taiwan market: iPhone 6 sales slowing down, say channels

    Before Going to Press | 11h 13min ago

  • China-based Xi'an LONGi lowers prices for M2 solar-grade monocrystalline wafers for Taiwan solar cell makers

    Before Going to Press | 11h 14min ago

  • Xilinx tapes out MPSoC on TSMC 16nm FF+ process

    Before Going to Press | 11h 14min ago

  • PTI set to post revenue growth in 3Q15

    Before Going to Press | 11h 15min ago

  • Korea panel makers see reserves hit 3-year high

    Before Going to Press | 11h 15min ago

  • AUO, Innolux further down-talk merger possibilities

    Before Going to Press | 11h 16min ago

Pause
 | 
View more
2015 China IC design market forecast
2015 global tablet demand forecast
Demand and supply trends in the global sapphire industry, 2014-2015
  • 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.