Sun Well Solar, a Taiwan-based maker of a-Si thin-film PV modules, will establish microcrystalline silicon (micro-Si) thin-film PV module production lines in 2011, with an initial annual capacity of 10MWp to be completed in the first half and a total capacity of 130MWp to be completed by the end of the year, according to company chairman Robert Wong.

Sun Well, a subsidiary of the largest Taiwan-based optical disc maker CMC Magnetics, has an annual capacity of 50MWp a-Si thin-film PV modules, with equipment supplied by Switzerland-based Oerlikon Solar.

Because orders received are far in excess of the capacity, Sun Well will invest NT$500 million (US$16.3 million) to set up 10MWp micro-Si thin-film PV module capacity in the first half of 2011 and then invest an additional NT$4-5 billion to add 120MWp to reach a total capacity of 130MWp by the end of 2011, with all equipment to be supplied by Oerlikon Solar, Wong pointed out.

Sun Well expects Europe to account for 90% of its revenues in 2010, Wong noted. However, the proportion will decrease to 50% in 2011 due to expected large increases in orders for semitransparent thin-film PV modules built on roofs of greenhouses in South Asia, Southeast Asia, China and other markets, Wong indicated. As such PV modules are more profitable, Sun Well may see its overall gross margin rise from 15% currently to 20-25% in 2011, Wong said.