Taiwan's solar wafer plant brews rising prices to guard against mainland factories pulling back

Affected by the intentional increase in the price of polycrystalline silicon, Taiwanese solar wafer fabs have actively brewing price increases. However, they still have to prevent mainland companies from “pulling on their backs”. The mainland market, which has a relatively high inventory level, still views the rising prices. Different attitudes, most companies believe that the probability of price increases is high because the industry has been able to operate normally, but there are also a few mainland manufacturers that because the cost of wafer processing is relatively lower than that of Taiwan factories and even other mainland factories, prices will be passively slightly adjusted. However, the urgency is not high.

Recently, the price of the polycrystalline germanium plant in the first quarter of the plan has risen from about US$25 to US$28, which has been adjusted to the US$30 per kilogram target. This has led to the active brewing of many solar wafer fabs on both sides of the Taiwan Strait.

Taiwan Semiconductor Manufacturing Co., Ltd.’s two major wafer fabs, including Lu Mingguang, chairman of Sino-U.S. Silicon, have confirmed recently that polycrystalline silicon has attracted US$30 and the relatively low price of silicon wafers has become an inevitable trend; Green Energy’s general manager Lin Helong also It is pointed out that it is hoped that prices will return to a more reasonable level after the Chinese New Year, and the operation of the industry will be healthy. In fact, part of the quotations of high-efficiency wafers for green energy have been adjusted; and the second-line plants are also optimistic that prices will return to a reasonable level.

However, this wave of rising prices brewing in the mainland market seems to show mixed trends. A few of the mainland's vertically integrated plants for solar energy sources frankly stated that the total cost control is relatively better than that of Taiwan-based plants and some mainland manufacturers. It is expected that the prices will be followed up slightly and may not follow up, because there is no price at present. With low pressure and unaffordable costs, the mainland manufacturers frankly stated that the main consideration is to prevent the enemy from resuming this, and that prices are still tending to maintain the December 2011 quotation level.

Due to the fact that the mainland plant has a relatively large capacity of silicon wafers, and the continuous market inventory level is not low, so far no effective consumption has been completed, even if the capacity utilization rate is constantly being adjusted, the solar energy industry estimates do not follow up Adjusters are most likely to have inventories that have not yet been cleared to a safe level. They are able to take advantage of counter-trend operations to effectively get rid of stocks, and they can further effectively control market share. This is clearly a hindrance to peers interested in price hikes. "Once an industry that does not want to increase prices has considerable influence in the market, there will be changes in price increases.

Some of the mainland solar power plants that agree with the price increase pointed out that Polysilicon is indeed brewing prices, and although it is not known whether they can effectively increase, the entire industry chain product prices are showing a trend of being difficult to cut down. In particular, many solar energy plants on the mainland are showing reduced production and production suspension. The operation of supply and demand is making effective and reasonable adjustments, so the forecast of price recovery is a predictable trend.

Moreover, it is no longer like the rampant wave of goods in the second half of 2011. Customers' prices are casually chopped and transactions are negotiable. Now, bargaining at will is not necessarily effective, because prices have already seen many players, even if they are still producing. Whether or not to accept orders will not allow the losses to continue to expand.