Solar-grade silicon wafer makers are expected to raise wafer price by 2-3% in June, bringing the total increase for the first half of 2010 to about 15%. The price of 6-inch wafers will rise from the current US$3.40-3.50 to US$3.50-3.60, according to industry sources.

Taiwan-based solar wafer makers Sino-American Silicon Products (SAS) and Green Energy Technology (GET) are simply executing prior plans to gradually raise quotes each month in the second quarter, and will continue to do so unless the market environment changes drastically in June, company sources revealed.

The shortage of solar wafers has been ongoing since the second half of 2009, and several first-tier makers are only capable of fulfilling about 70% of orders, industry sources said.

With the approaching FIT (feed-in-tariff) rate cut in Germany on July 1, Taiwan's solar wafer makers are seeing strong order momentum for the rest of May and June, and predict limited impact after the new incentive policies .

Sources from Taiwan-based solar cell makers confirmed that they have received verbal notification from wafer suppliers in regards to price hikes in June, and will likely agree with the increase if tight supply persists.

Solar cell prices have remained flat in May and no adjustments are planned for June due to concerns about Germany's FIT rate slash, the sources indicated, adding that solar cell makers will aggressively demand a wafer price reduction if and when the solar market stagnates in the coming months.