China-based solar cell maker Suntech Power is confident that the company's production capacity will have a compound annual growth rate (CAGR) that will beat the entire solar industry and claims that its market share in terms of capacity will reach 10% in 2010, according to company chairman Zhengrong Shi at the ongoing SEMICON China 2007 semiconductor trade show in Shanghai.

While stressing the substantial business potential from the market in China, Shi expects the global solar energy market to see a CAGR of 41% through 2010 with total capacity reaching 10 peak gigawatt (GWp). Although Suntech has been established for only five years, Shi said the company's capacity will have a CAGR reaching 65% through 2010 with an annual capacity reaching 1GWp, translating into a 10% share of the global market.

Besides expanding capacity to meet growth in demand, Shi emphasized that Suntech also pursues quality. Given that the average power conversion rate of solar cells is currently at around 16%, he highlighted that the company's mono-crystalline solar cell has a conversion rate as high as 18%, sometimes even surpassing 20%. The conversion rate for overall solar cells among all vendors will approach 20% in 2008, he noted.

Already having mentioned an extended deployment in thin-film material base solar cell production, Shi added in saying that he is confident that the conversion rate will double to 12% in the future, up from the present 6%. A new fab for thin-film solar cell production at Shanghai will commence equipment installation in the coming months, he added.

Regarding cost pressures from rising prices of polysilicon, Steven Chan, company business development division vice president, projected that Suntech will see improving profitability amid a growing proportion of polysilicon procurement from the contract market in 2007. Suntech sources about 80% of its polysilicon from the spot market, he added.

Projecting the polysilicon price trend, Chan foresees pricing may trend up by around 10% or stay flat in 2007, given the persistent growth in demand. He estimated that Suntech should see its average selling prices (ASPs) shrink by about 15% in the s ame period more competitors arrive.

Source:佚名