Due to instability and strong fluctuations of the global economy, Delta chairman Bruce CH Cheng has indicated the likelihood that fourth-quarter performance will not meet expectations. Cheng also pointed out the biggest problem in the solar industry is the oversupply problem.
Delta CEO Yancey Hai stated there is still room for the price of solar and LED products to decrease despite the on-going price drops. These drops indicate the price and the market have been working toward stabilization. When the price reaches a sweet spot, consumers will begin their purchases.
Cheng further noted there will be future challenges for Taiwan-based solar firms due to lack of control over steady material supplies. However, Delta will not give up on this sector.
The solar and LED markets are affected by the economies in Europe, the US and China, stated Hai, and new industries need time to grow, hence it is likely that the two markets will turn upwards in 2012.
Commercialization of solar products depends on grid parity, added Hai. The situation is quite similar to LCD TVs. The price of LCD TVs dropped from US$10,000/unit to US$1,000/unit in 4-5 years, and afterwards, the price and market have reached stability. Hence, Delta is still optimistic about the solar industry in the long-run.
The floods in Thailand have not affected Delta's operations in the country, said Hai.
Bruce CH Cheng, chairman of Delta
Photo: Michael Lee, Digitimes, October 2011
Article translated by Jackie Chang
