Solar energy industry representatives from China and Taiwan yesterday agreed that they would need to collaborate on manufacturing and technological research and development (R&D) to stem falling solar cell prices and digest inventories if they are to avoid a dilemma similar to the one hurtin the global dynamic random access memory (DRAM) industry.
Solar cell makers suffered their worst financial performance in the first quarter as a result of the global financial crisis and Spain’s reduction of solar cell orders, Motech Industrial Inc (茂迪) chairman and chief executive officer Simon Tsuo (左元准) said at an industry forum in Taipei.
Plummeting solar cell prices, which have created a buyer’s market and, subsequently, a buildup of huge inventories among manufacturers as a result of their customers’
wait-and-see attitude, have also eroded profitability, he said.
Auria Solar Co (宇通) chairman Tsai Jin-yao (蔡進耀) expressed similar views during the forum held at the Taipei International Convention Center.
“Global buyers are seeking Chinese prices at Taiwanese quality, making it impossible for cross-strait firms to be profitable when the two countries are constantly engaged in a cutthroat price war,” he said.
To prevent such friction in the burgeoning green technology industry, Minister of Economic Affairs Yiin Chii-ming (尹啟銘) proposed cross-strait solar supply chain collaboration through capital infusions from both sides in joint investment, R&D and solar cell production.
Instead of competition resulting in repetition in upstream technology, China and Taiwan can “work with each other in downstream solar technology with Taiwan sharing our expertise in battery and panel making, for example,” Yiin said.
The ministry earlier this week proposed allowing Chinese investors to indirectly acquire stakes of up to 30 percent in local companies. Yiin said the Cabinet would likely approve the measure by the end of this month, when the ministry is to release the list of domestic sectors that would be qualified to receive Chinese investment.
During yesterday’s forum, Tsai pushed once again for the government to pass a proposed statute governing the development of renewable energy (再生能源發展例), which has been delayed at the Legislative Yuan for more than eight years, in order to promote the cross-strait solar agenda.
This would no doubt bring tremendous opportunities to Taiwan, he said.
“And once China and Taiwan have become the dominant solar energy players, we can be the ones to set global solar standards and be the leader in this industry,” Tsai said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday obtained the government’s approval to inject an additional US$7.5 billion into its US subsidiary, the Department of Investment Review said in a statement. The department approved TSMC’s application of investing in TSMC Arizona Corp, which is engaged in the manufacturing, sales, testing and design of IC and other semiconductor devices, it said. The latest capital injection follows a US$5 billion investment for TSMC Arizona approved in June. The chipmaker has broken ground on two advanced fabs in Arizona with aggregated investments approved by the department totaling US$24 billion thus far. According to TSMC, the first Arizona
The lethal hack of Hezbollah’s Asian-branded pagers and walkie-talkies has sparked an intense search for the devices’ path, revealing a murky market for older technologies where buyers might have few assurances about what they are getting. While supply chains and distribution channels for higher-margin and newer products are tightly managed, that is not the case for older electronics from Asia where counterfeiting, surplus inventories and complex contract manufacturing deals can sometimes make it impossible to identify the source of a product, analysts and consultants say. The response from the companies at the center of the booby-trapped gadgets that killed 37
FRIENDLY TAKEOVER: While Qualcomm Inc’s proposal to buy some or all of Intel raises the prospect of other competitors, Broadcom Inc is staying on the sidelines Qualcomm Inc has approached Intel Corp to discuss a potential acquisition of the struggling chipmaker, people with knowledge of the matter said, raising the prospect of one of the biggest-ever merger and acquisition deals. California-based Qualcomm proposed a friendly takeover for Intel in recent days, said the sources, who asked not to be identified discussing confidential information. The proposal is for all of the chipmaker, although Qualcomm has not ruled out buying some parts of Intel and selling off others. It is uncertain whether the initial approach would lead to an agreement and any deal is likely to come under close antitrust scrutiny
SECURITY CONCERNS: The proposed ban on Chinese autonomous vehicle software and hardware would go into effect with the 2027 and 2030 model years respectively The US Department of Commerce today is expected to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on US roads due to national security concerns, two sources said. US President Joe Biden’s administration has raised concerns about the collection of data by Chinese companies on US drivers and infrastructure as well as the potential foreign manipulation of vehicles connected to the Internet and navigation systems. The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware, said the two sources, who declined to be identified because the