E-ton projects polysilicon market to see equilibrium at earliest in 2008
Nuying Huang, Taipei; Esther Lam, DIGITIMES, 31 August 2007
http://www.digitimes.com/bits_chips/a20070830PD222.html
The persistent shortage of polysilicon may reach an equilibrium in the first half of 2008 at the earliest, as both new comers and existing players all plan for expansion in 2008, said E-ton Solar Tech company general manager Chin-Yao Tsai. M.Setek from Japan and DC Chemical from Korea, the two new comers in polysilicon production who are both acknowledged by industry players for their relatively strong competitiveness in the industry, both plan for new supply in 2008, Tsai said. M.Setek plans to have an annual output of 5,200 tons of polysilicon in 2008 while DC Chemical plans for 3,000 tons in annual output. More polysilicon supply is also going to be available from some China-based makers, he noted.
Besides the anticipated new polysilicon supply from new comers, existing players, including Hemlock Semiconductor, Renewable Energy Corporation (REC), Wacker and MEMC Materials, who all plan expansion in 2008, should help fill expanding demand, Tsai said. Under an optimistic projection, the polysilicon market should meet equilibrium in the first half of 2008, he projected.
The photovolatic (PV) industry will see a divergent trend in 2008 along with the anticipated polysilicon market equilibrium. Those companies who have inked long-term contracts with material suppliers, should find it easier to land materials in 2008 and continue growing rapidly, Tsai said.
However, those who fail to secure materials, or those with lower competitiveness and unhealthy structures, will be phased out, Tsai commented. These companies should be still subject to high material costs as they can only secure their supply from the spot market.