Quarterly manufacturing capacity added during the third quarter of 2010 broke through the GW barrier for the first time, driving PV equipment spending to a new quarterly high, according to Solarbuzz.
Manufacturing equipment spending posted record returns, with c-Si ingot-to-module and thin-film panel spending in excess of US$2.9 billion. Strong c-Si cell and thin-film panel expansion will continue through the fourth quarter with a further 1.3GW of quarterly ramped capacity projected to come online.
Capacity expansion during the third quarter was heavily biased toward c-Si cell technologies, providing further indication that c-Si cell manufacturing has evolved into a mature process with qualified equipment readily available. New c-Si cell lines contributed an incredible 95% of the 1.12GW of quarterly capacity brought online during the third quarter compared to just 5% from all the thin-film panel types.
Furthermore, China and Taiwan cell manufacturers accounted for 80% of capacity added. Standard c-Si cell types dominated new lines ramped up during the third quarter, as c-Si cell manufacturers reverted to qualified process tools and employed low-risk process flows within these fabs. Standard cell lines accounted for 78% of the new c-Si capacity during the quarter, with the remaining 22% spread across high efficiency variants. Top tier c-Si makers continue to implement high efficiency enhancement options, with 221MW of new quarterly capacity comprised of incremental line improvements or dedicated selective emitter concepts.
Equipment spending on c-Si cell lines during the third quarter was US$852 million, down 5% on quarter, following a record high of US$898 million in the second quarter. Tool spending was dominated by established c-Si cell makers such as China Sunergy, DelSolar, Gintech, JA Solar, Motech, Suntech and Solartech, but the industry saw sizeable contributions from new competitors in China including Hareon Solar, Jinko Solar, LDK Solar and ReneSola. China and Taiwan now account for a combined 72% of all c-Si cell equipment spending over the trailing twelve month reporting period. With standard process tooling in strong demand, c-Si equipment suppliers such as Applied Materials, Amtech, Centrotherm, Despatch, and Roth & Rau were among the leading beneficiaries over the quarter.
Thin-film equipment spending grew 53% on quarter, as a new cycle of thin-film capital equipment investment gained traction. Tool spending within this segment remains highly fragmented, with a wide range of tool types and supply-chains being implemented during the quarter. This was in part driven by CIGS tool spending which-while exceeding US$200 million and returning 165% on year growth-was spread across a wide range of absorber, substrate and process flow variants.
Equipment spending will remain strong for c-Si cell tooling though the fourth quarter, but with flat-to-negative growth. Conversely, the thin-film spending cycle will maintain its upward growth trajectory, as existing tool backlogs are delivered across a range of thin-film companies worldwide ramping up fabs for the first time. However, PV equipment revenues are projected to decrease during 2011 as the threat of overcapacity impacts the expansion plans of leading cell and panel suppliers.