China PV module sector sees departure of 70% of makers

Nuying Huang, Taipei; Adam Hwang, DIGITIMES [Thursday 15 January 2009]

China's photovoltaic (PV) module sector, faced with fast decreasing global demand, saw a drastic reshuffling process in the fourth quarter of 2008 and as many as 250, or 70%, of its originally 350 makers have been forced out of the market because of relatively unhealthy corporate structure and poorer competitiveness, with about 100 large ones remaining, according to industry sources.

The surviving PV module makers are large makers with strong vertical integration, some of whom are invested by government organizations, the sources pointed out. Suntech Power is the largest China-based maker of both solar cells and PV modules with an annual PV module production capacity of 1GWp, followed by Yingli Green Energy with 800-1,000MWp, Trina Solar with 700-800MWp and Solarfun Power with 600MWp, the sources indicated.

Unlike China, Taiwan's PV module industry consists of about 100 independent makers with comparatively small annual production capacities of up to 300MWp, while main makers of solar cells such as Motech Industries and Gintech Energy are unwilling to step into making PV modules because they consider it conflict of interest with their clients from the PV module sector, the sources pointed out.