Taiwan-based solar cell makers incurred losses in the first quarter of 2010 from depreciation of the euro, according to industry sources. Since Europe-based module makers account for the majority of sales, most shipments are denoted in euros. Solar wafer makers on the other hand saw little impact since transactions are done mostly in US dollars.
Taiwan's solar cell companies have since stepped up hedging against the euro in the second quarter, the sources said.
Solar cell maker Motech Industries posted a NT$147 million (US$4.6 million) loss in the first quarter from currency exchange rates. Gintech Energy is one of the very few solar cell makers to buck the trend, earning NT$45.58 million.
For solar wafer producers, the weakening euro has less of an impact. Green Energy Technology pointed out that procurement of polycrystalline silicon (poly-Si) and wafer shipments are all denoted in US dollars.
For its module business, though thin-film solar panels are shipped in euros, it accounts for a small portion of total revenues, the company said. Green Energy profited NT$7 million from currency exchange rates in the first quarter
The euro depreciation has actually benefited Sino-American Silicon Products (SAS) since some of its long-term contracts for poly-Si procurements are denoted in euros, the company said, adding only 10% of sales are done in euros. In the period, SAS registered a profit of NT$5 million from currency exchange rates.
Article translated by Willie Teng
