Price competition between China- and South Korea-based solar firms continues to heat up, putting pressure on Taiwan-based solar firms. Industry sources indicated that average quotes between China- and South Korea-based solar modules have been around EUR0.65/W (US$0.89) for module orders of 1MW. South Korea-based firms have been trying to catch up with China-based vertically integrated firms.

South Korea-based solar firms have indicated to customers that as long as they have volume, prices can be negotiated.

The cost benefit of China-based firms has been causing firms in Europe, the US, and Japan to face survival tests. In 2011, many solar firms have reduced or halted operations, some even filing for bankruptcy.

South Korea-based firms are mostly focused on production of solar modules, which will likely affect the China-based firms more than Taiwan-based peers. Similar to China-based counterparts, South Korea-based firms have strong backing by the government, allowing the firms to engage in price competition.

Taiwan-based solar firms lack government support and the future is less optimistic. Taiwan-based solar cell firm Solartech reported October revenues of NT$776 million (US$26 million), a 0.19% decrease on month and 40.72% decrease on year.

Source:digitimes