Sharp to expand both silicon and solar cell production
Esther Lam, DigiTimes.com, Taipei / 15 January 2007
source. DigiTimes Taiwan
http://www.digitimes.com/bits_chips/a20070115VL208.html
Already billed as the as the top solar cell maker, Sharp plans to further expand both its silicon and solar cell capacity and aims to house a total capacity of 710 megawatts (MW) power annually, according to the company. Sharp announced on January 12 that it is opening a new site for its solar systems group in Toyama City, Toyama prefecture in Japan. The company plans to invest five billion yen with an approximate annual silicon capacity of a thousand tons of silicon. Production at the site is slated to start in January 2007.
In addition to the expansion of silicon supply, Sharp on the same day announced that it would invest three billion yen to increase annual solar cells production capacity at Katsuragi, Nara Prefecture by 110 MW starting in March, adding that the site will house the world’s highest capacity of 710 MW per year.
Taiwan solar industry players estimate that a thousand tons of silicon could produce about 100 MW of solar cells but this amount is relatively less than average polysilicon suppliers. They also commented that Sharp has always been cautious about expanding capacity and the company’s announcement may be interpreted that the company has secured sufficient raw material.
Sharp is a leading solar-related products vendor and produces products ranging from ignots, wafers, cells, modules and systems. According to Macquarie Research Equities, Sharp occupies almost a quarter (24%) share of the global solar cell market in 2005 with a shipment amount of 428 MW. Sharp currently has three solar application production bases in Japan. It already houses a solar cell/module production base at Katsuragi and it also produces solar modules at Tochigi and Yao, Osaka Prefecture.
Citing Photon International, Macquaire pointed out that the global photovoltaic market should enjoy a compound annual growth rate (CAGR) of 44% during 2005 to 2010. According to a JP Morgan September 18, 2006 report, extrapolation of government targets for solar installations will enjoy a compound annual growth rate (CAGR) of 28% from 2005 to 2010 to reach 6,000 MW in 2010.
JPMorgan, however, also noted that price pressure from new entrants, including Delta Electronics, Semiconductor Manufacturing International Corporation (SMIC), Neo Solar Power and smaller players in China, should become fiercer. The investment bank also noted that solar cell/module makers from Asia should see a tougher challenge overall than their European peers.