Motech Industries, a Taiwan-based maker of solar cells, put an end to a contract with a supplier of solar wafers and renewed the contract with prices based on spot market quotes on June 25, according to the company.
Industry sources noted that Motech may increase procurement volumes to obtain contract prices based on the spot price. Motech is currently operating at full capacity hence increasing procurement of solar wafers will not be a problem, added industry sources.
Neo Solar Power (NSP) has reported gross losses of NT$1.588 billion (US$53 million) due to losses from long-term material supply contracts and drops in average selling prices (ASPs). In particular, losses from long-term material supply contracts accounted for 50-60%.
Article translated by Jackie Chang
