Taiwan solar makers grow sales 70 percent

The top solar producers in Taiwan sold $1.1 billion in cells in the first half of 2008, according to new data from the Taiwan External Trade Development Council.

That revenue represents an increase of nearly 70 percent over the same period in 2007 thanks to strong demand from Europe, the group said.

The six leading solar cell makers—Motech Industrial, Gintech Energy, E-Ton Solar Tech, Sino-American Silicon Products, Sinonar and Green Energy Technology—racked up NT$35.6 billion ($1.1 billion) in sales, up from NT$21 billion in the first half of 2007, according to data reported to Taiwan’s stock exchange.

The increased sales were in part driven by higher selling prices for solar cells because of heightened demand thanks to higher oil prices, the trade council said. Subsidies for solar in Europe and Japan also accounted for some of the increased demand.

Additionally, Gintech was one of the new solar companies significantly ramping production, the council said (see MEMC, Gintech amend solar supply deal). In October, Gintech signed a 10-year, $3 billion to $4 billion deal to buy solar wafers to make into cells from St. Peters, Mo.-based MEMC Electronic Materials (NYSE:WFR).

Motech Industrial subsidiary Motech Solar has contracted to supply 11 megawatts of six-inch multi-crystalline photovoltaic cells in 2008 to Roseville, Calif.-based Solar Power Inc., with potential for a long-term supply agreement (see Solar Power in supply agreement with Motech).

Green Energy Technology said it has secured €39.86 million ($58.77 million) in orders to supply thin-film solar modules to Germany and Spain next year.

Applied Materials is investing $17 million to expand its equipment-manufacturing center in Taiwan, and Taiwan Glass Industrial has said it plans to invest $11.9 million to start production of glass for solar cells.

And Sino-American Silicon Products recently invested €30 million ($43 million) in Italy's Silfab, a solar-grade polysilicon startup (see Windy dealmaking leads the week).

Taiwan Premier Liu Chao-shiuan has Taiwan’s solar industry production may reach NT$500 billion by 2012.

The report from the trade council said that in the first half of the year solar cell manufacturers were the best-performing segment in Taiwan’s high technology industry , which includes semiconductors, flat-panel displays, computers, mobile phones and digital music players.