Judging by orders received at the end of 2010 and equipment installation thus far in 2011, solar equipment companies estimate that demand for solar cell equipment from China in the first three months of 2011 will exceed 10GWp. China-based solar cell makers will add at least 10GWp in capacity during the period, equipment companies noted.

Second-tier solar cell makers with 300-500MWp current capacity are looking to ramp up to the 1GWp level to achieve even larger economies of scale, said market watchers, adding that the goal is to survive and be profitable before reaching grid parity, which should be sometime in 2013.

Solar companies in Europe, the US and Japan are increasing outsourcing of production to manufacturers in China and Taiwan for cost reasons in 2011. China, in turn has become the largest producer in the solar supply chain, particularly in solar modules. Vertically-integrated companies will also raise solar cell capacity to supply their own downstream needs.

Global demand for solar cell equipment in 2011 is projected to reach 20GWp, which means China, in the first three quarters alone, will represent half of the worldwide market, market watchers said.