Taipei, Wednesday, September 3, 2014 04:12 (GMT+8)
partly cloudy
Taipei
27°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
  • Digitimes Research: CSOT expected to ship 25 million LCD TV panels in 2014

    Displays | 5h 18min ago

  • China, Taiwan solar-grade silicon wafer makers plan to hike prices

    Green energy | 5h 20min ago

  • Semicon Taiwan 2014: Focus on new processing, packaging technologies

    Bits + chips | 5h 59min ago

  • Epistar, Genesis may benefit from Cree investment in Lextar, says Epistar

    LED | 6h 20min ago

  • Notebook panel supply expected to see 20% shortage in 3Q14

    Displays | 6h 26min ago

  • Supply chains ramp up production for 9.7-inch iPad

    Displays | 6h 27min ago

  • Foxconn to invest in AirSig

    Before Going to Press | 6h 33min ago

  • Demand of 3D ICs may not take off for 3 years, says Amkor Technology

    Before Going to Press | 7h 9min ago

  • China-based CTIEC acquires France-based CIGS business

    Before Going to Press | 7h 27min ago

  • Taiwan market: HTC to launch new exclusive stores to promote aftersale services

    Before Going to Press | 7h 29min ago

  • Niching looks to ramp up LED leadframe and FC CSP substrate shipments in 2015

    Before Going to Press | 7h 53min ago

  • China to post highest growth in semiconductor manufacturing equipment spending in 2014

    Before Going to Press | 8h 11min ago

  • Clevo chairman to develop innovation park in northern Taiwan

    Before Going to Press | 8h 21min ago

  • Shortage of CNC capacity to remain until 2015, say unibody chassis makers

    Before Going to Press | 8h 22min ago

  • Tencent invests in DXY

    Before Going to Press | 8h 26min ago

  • Digitimes Research: Samsung lowers US 7-inch tablet prices

    Before Going to Press | 8h 27min ago

  • LDK Solar sees continued losses in 1H14

    Before Going to Press | 8h 28min ago

Pause
 | 
View more
Analysis of China revised domestic semiconductor industry goals
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.