China's Ministry of Finance and State Taxation Administration has announced significant changes to its export tax rebate policy, effective December 1. The new policy eliminates rebates for 59 products and reduces the rebate rate from 13% to 9% for 209 items, including refined oil, solar panels, lithium batteries, and modules, vanadium redox flow batteries, and certain non-metallic mineral products. This 4% reduction represents an approximate 30% decrease in rebates.
Trade disputes between the EU and China, especially in the solar and automotive sectors, underscore the intricate nature of global trade. Chinese manufacturers have shown resilience and adaptability, often finding ways around regulatory hurdles.
Sino-American Silicon Products (SAS) Group is expanding its renewable energy presence through a recent stock subscription agreement with Anneal Energy, securing a 45% stake and becoming the largest institutional shareholder. This move aligns with adjustments to Taiwan's Electricity Act, which now allows Type III solar power plants—those with less than 2,000 kilowatts in capacity—to sell green energy to renewable trading companies for corporate use.
Panasonic's battery manufacturing division has found a silver lining in the growing demand for data center energy systems, offsetting the impact of slowing electric vehicle (EV) sales. The division reported strong financial results despite challenges in the EV market.
Following the victory of Donald Trump and the Republican Party in the US presidential and congressional elections, major changes are anticipated when the new administration takes office. Chief among these changes is the likely rescinding of unspent funds under the Inflation Reduction Act (IRA), which could significantly impact the renewable energy, energy storage, and electric vehicle (EV) sectors.
Transitioning to net-zero emissions by 2050 presents a major challenge for Taiwan and many countries alike, demanding extensive changes to energy infrastructure, industrial practices, and consumer behavior. Taiwan's National Science and Technology Council (NSTC) has adopted an "ecosystem" approach to unify the energy supply chain, enabling practical applications of hydrogen energy, marine energy, energy storage, grid integration, and carbon capture solutions.
Following the convening of local enterprises by the China Photovoltaic Industry Association (CPIA) to address vicious competition tactics in China's solar energy industry, Chinese solar firms have jointly acknowledged the significance to mitigate price-cutting practices, according to industry sources.
Liteon Technology will continue to focus on AI servers, green energy, and high-performance infrastructure, with the company planning shipments of 33kW power shelves for next-generation AI servers in the fourth quarter of 2024. Furthermore, the company has completed testing of its liquid-to-liquid cooling system, with initial shipments slated to begin in 2025, and is formally entering the home energy storage market. Despite the traditionally off-peak season, the company expects both quarter-over-quarter and year-over-year growth as revenue from AI-related products continues to rise.
The industry's trio of cloud service providers (CSPs) are actively embracing nuclear energy with unprecedented enthusiasm, signaling a major shift in the global energy landscape. As the AI race intensifies, massive investments from companies are flooding into infrastructure projects worldwide, driving a surge in demand for carbon-free energy (CFE). The global response to this transformation will significantly shape the future energy landscape.
Taiwan is aligning with a growing global trend, as nations and tech giants increasingly turn to nuclear power to meet the surging electrical demand driven by AI. Premier Cho Jung-Tai recently suggested that Taiwan maintains a "very open" attitude toward adopting new nuclear technologies, marking a potential shift in the government's stance on nuclear energy.
The US Department of Energy estimates the country will need to add 200 GW of nuclear capacity by 2050 to meet its net-zero targets and phase out coal-fired power plants. That translates to roughly 200 new reactors.
This year's Hon Hai Tech Day (HHTD24) not only showcased Foxconn's latest technological developments and plans to partners, investment institutions, and the media, but it was also open to the general public for the first time. Noteworthy technology and applications have been summarized as follows.
Minister of Economic Affairs J.W. Kuo has raised the possibility of establishing renewable energy facilities in the Philippines to address Taiwan's surging energy demands, particularly from the semiconductor industry. With domestic green power development facing mounting obstacles, Taiwan could consider transporting power back via shipping or undersea cables to bridge the gap.
Chinese automaker Seres, in partnership with Huawei to produce the Aito EV brand, reported strong financial results for the first three quarters of 2024, driving notable growth for its supply chain. Taiwan-based suppliers, particularly Kwang Hwa Electronic Material, saw a significant revenue boost in September due to increasing orders from Seres.
Fueled by government support, technological advancements, and a growing appetite for energy independence, storage companies are aggressively expanding into the global residential energy storage market. As rooftop solar incentives increase worldwide, firms are rolling out new products to capitalize on rising demand for home energy storage systems.
The US plans to implement a ban in January 2025 on certain software and hardware used by connected cars from China and Russia for security. This initiative has drawn considerable criticism, with some arguing that mobile phones and smart consumer electronics have long been connected, labeling it as paranoid and overt protectionism.
MediaTek has unveiled its flagship mobile chip, the Dimensity 9400, capturing attention with its new AI capabilities, including the NPU 890, which delivers an impressive 50 trillion operations per second (TOPS) — now the market's benchmark for AI computing. Analysts anticipate that rivals like Qualcomm will aim for this same 50-TOPS threshold in their next SoCs.
Seetel New Energy is expanding beyond its core business of energy storage manufacturing and system integration into front-of-meter (FTM) and behind-the-meter (BTM) storage, renewable energy storage, and EV charging applications. The company anticipates that its 200 MW storage projects, set to roll out in the fourth quarter of 2024, will boost the quarter's performance, potentially turning 2024 into a profitable year.
Taiwan's largest solar photovoltaic system installer, Hengs Technology, is optimistic about its fourth-quarter performance, with signs of recovery in its solar system installation business after three quarters of stagnation. Additionally, its front-of-the-meter (FTM) energy storage projects are entering a critical harvesting phase, according to Chairman Heng-hao Chou.
Jun Seki, Foxconn's chief strategy officer, said at Hon Hai Tech Day (HHTD) that unlike their smartphones, notebooks (NB), and game consoles, Foxconn's strategy for electric vehicles (EVs) is to adopt a commissioned design and manufacturing services (CDMS) model.
Taiwan's industrial electricity prices will increase by 12.5% starting October 16, while residential rates remain unchanged. This significant hike presents challenges for the solar, wind power, and front-of-the-meter (FTM) energy storage sectors. However, behind-the-meter (BTM) energy storage, which faces fewer restrictions, is poised to emerge as the ultimate beneficiary. The key question remains: will demand for BTM energy storage solutions grow rapidly?
Taiwan's energy storage market is experiencing turbulence as several recent projects have been paused, raising concerns among local players about future growth. However, international energy storage leaders like Fluence and QPO Energy remain optimistic about the global outlook, highlighting strong demand across Europe, the US, and the Asia-Pacific region. The US market, in particular, benefits from the Inflation Reduction Act (IRA), prompting calls for Taiwan's supply chain to capitalize on emerging opportunities abroad.
The drop of Taiwan's solar field development volume in 2024 has sent ripples into AUO's expected installation volume of 2025 and 2026. However such outlook did not stop the firm's energy division to follow in the footstep of its display business , eyeing the US and European markets as its first stop in its international expansion efforts.
Formosa Smart Energy (FSE) has announced that the first phase of its battery cell and module plant in Changhua will commence mass production in November 2024.
