Europe-based solar wafer firms have been said to demand Taiwan-based downstream solar firms to oblige to the take-or-pay supply contracts signed between the sides.
Industry sources noted if other upstream firms also demand downstream firms to honor the supply contracts, the financial woes within the industry will spread.
The prices of solar materials and products have been falling across the supply chain because various governments have been cutting down incentives. Many solar firms have been experiencing falling capacity utilization rates and risk of bankruptcy. Asia-based firms have been accustomed to signing long-term supply contracts with Europe- and US-based material suppliers. However, during low demand and falling prices, it is difficult to oblige to the terms of the contracts, said industry sources.
Taiwan-based solar firms reportedly under pressure to honor contracts
Photo: Digitimes file photo
Article translated by Jackie Chang
