Rising deposits for polysilicon wafer supply weigh on solar cell production costs
Nuying Huang, Taipei; Esther Lam, DIGITIMES, 9 October 2007
Source: DigiTimes
http://www.digitimes.com/NewsShow/NewsSearch.asp?DocID=PD3217&query=SOLAR
Taiwan solar cell makers are seeing rising cost pressure as some of their polysilicon wafer suppliers in China are doubling the deposit required when signing new contracts. Whether or not Taiwan-based silicon wafer suppliers will follow suit also remains a concern. Industry sources indicated that some China-based wafer makers have revised up their deposit ratio from 5% to 10% for mid- and long-term contracts. They added in saying that Taiwan-based solar cell makers who have recently made supply agreements might have already face such an adjustment.
Sources at Taiwan-based solar cell makers noted that some Taiwan-based wafer makers are likely to follow suit. Green Energy Technology, Sino-American Silicon Products (SAS) and Wafer Works are being named as suppliers from Taiwan likely to adjust their contract deposit amount.
The raising deposit ratio highlights the present strong demand from solar cell makers as they are still accepting the renewed contract terms, despite the associated pressure on their cost flow, industry players commented. However, they also noted that the adjustment implies that polysilicon suppliers are concerned about their long-term supply status, given that many of the signed contracts are now extending through 2010 and later, meaning that the current shortages may have already been solved.