With sluggish demand in the European market having dampened the capacity utilization rate of solar-cell manufacturers, second-tier Taiwan PV silicon wafer makers have cut their quotes for 6-inch 200-micron thick polysilicon (poly-Si) wafers to US$3.30 apiece, down 5% from the original US$3.50. Although first-tier suppliers still maintain the price of US$3.5, many have openly expressed willingness to negotiate with solar-cell clients, underscoring their flexibility in pricing.

Due to unclear subsidy policies in Germany and Italy and ensuing order deferral by clients, solar-cell suppliers have witnessed decline in sales prices and capacity utilization from the end of the first quarter. As a result, in reversal of solid quotes amid constrained supplies during the second half of 2010, PV silicon wafer quotes have started to trend downward recently.

Second-tier suppliers noted that clients, especially European ones, have obviously decreased their orders.

Second-tier PV silicon wafer suppliers reported that they are actually still running at full capacity and can maintain full operation in the second quarter due to their small-scale production. However, aware of the plight of their solar-cell clients, they are willing to cut their prices to help the latter weather the difficult times.

First-tier PV silicon-wafer plants still maintain the price of US$3.5, which is actually 5% lower than the peak price of US$3.7 on the spot market in the first quarter. Although first-tier silicon wafer plants have yet to cut their quotes, some, such as Sino American Silicon Products (SAS) and Green Energy, have shown willingness to help clients cope with their problems.

Market players pointed out that although silicon wafer plants have yet to feel the pressure of slackening demand, they are fully aware of their close linkage with the interests of their solar-cell clients and therefore become more flexible in making price concession.

At present, major Taiwan-based PV silicon wafer suppliers include SAS, Green Energy, Danen Technology, and Eversol. SAS recently spun off its semiconductor silicon wafer and LED sapphire substrate divisions into two independent companies. Green Energy focuses on silicon wafer and silicon thin-film solar, while Danen and Eversol are dedicated to PV silicon wafers.

In China, after deducting a 17.5% tax, quotes for 6-inch PV silicon wafers have also slipped to around US$3.20, down 5-8% from the over US$3.50 originally.