Solar wafer and cell manufacturing companies have been negotiating with their upstream material suppliers to lower July prices for polycrystalline silicon (poly-Si), but the talks have come to a deadlock.
According to industry sources, the current price of polysilicon is US$50/kg and for wafer firms to break even, 6-inch solar wafers should be US$2.40/unit. However, the current price of 6-inch solar wafers is US$2/unit, 20% lower from the break even price. Hence, the pressure on solar wafer firms has been growing as each unit of solar wafers sold, a 20% loss is incurred.
South Korea-based polysilicon firms supply more than half of polysilicon demand in Taiwan, added industry sources. But the negotiations have been unsuccessful. Taiwan-based solar firms have been rejecting quotes of US$50/kg, therefore, the negotiations have stalled. It is unlikely for polysilicon firms to lower quotes, industry sources pointed out.
Article translated by Jackie Chang
