Taipei, Tuesday, September 26, 2017 02:44 (GMT+8)
mostly cloudy
Taipei
28°C
Commentary: US protectionism on domestic solar industry may backfire
Jackie Chang, DIGITIMES, Taipei [Monday 23 April 2012]

The US government has been taking up anti-dumping and anti-tariff investigations against China-based solar firms. According to LA Times, the US government recently announced the import tariff of 2.6-4.7% on China-made solar products. A second round of tariff may be announced by the Department of Commerce in May, said paper.

China-based solar firms, however, have been finding ways to avoid paying the tariff such as transfering solar cell orders to Taiwan. Taiwan-based solar cell makers have been experiencing rising capacity utilization rates but indicated that orders from China-based firms often have unprofitably low quotes. China does not want to give up on the US market because it is one of the fastest growing solar markets in the world.

According to a new report from Digitimes Research, "PV 2012 - Expectations for the global solar market," growth of solar demand in the US has been shot over 100% every year since 2009. Furthermore, total demand in the US is likely to reach 3.8GW in 2012.

The LA Times coverage indicated that some tariff advocates believe this ruling will help to create jobs in the green sector in the US. However, others noted that most green jobs in the US are in installation, sales and distribution of solar PV systems. The tariff on China-made solar goods is likely to increase cost for solar PV systems and weaken the competitiveness of US-based installation firms.

The global solar supply chain is interconnected. Despite China's strength in producing solar cells and modules in large volume, the US has been dominating the global solar market in polysilicon and solar equipment. If the capex of China-based solar firms fall due to the tariffs, negative impacts will hit polysilicon and solar equipment firms in the US. In addition, increasing the cost of solar PV systems will likely become a deterrent for customers in the US to switch to solar.

Realtime news
  • Sigurd to enter board of Winstek

    Before Going to Press | 4h 20min ago

  • MEMS sensor demand for smartphones, automotive surging

    Before Going to Press | 4h 21min ago

  • Samsung certifies Synopsys design platform for 28nm FD-SOI process

    Before Going to Press | 4h 21min ago

  • Brand device vendors competing in wrist-worn wearables market with new products

    Before Going to Press | 4h 54min ago

  • Taiwan market: Smartphone sales return to growth in September

    Before Going to Press | 5h ago

  • SMIC plans capacity expansions in China

    Before Going to Press | 5h 37min ago

  • Taiwan panel makers optimistic about large-size micro LED displays

    Before Going to Press | 5h 40min ago

  • Samsung ready to mass produce MRAM chips using 28nm FD-SOI process

    Before Going to Press | 5h 42min ago

Pause
 | 
View more
UMC
Global AP demand forecast, 2017-2020
Global notebook shipment forecast, 2017 and beyond
  • China AMOLED panel capacity expansion forecast, 2016-2020

    This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.

  • Taiwan server shipment forecast and industry analysis, 2017

    Digitimes Research estimates that revenues from sales of server motherboards, servers, storage systems and related network system equipment by Taiwan-based vendors reached NT$555.8 billion in 2016 and the amount is estimated to grow 5.9% on year in 2017.

  • Global notebook shipment forecast, 2017 and beyond

    This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.