Isuppli predicts >50% growth for 5 of the top 10 solar semiconductor suppliers

Date: 06/09/2009

Semiconductor and electronics technology specific market-researcher Isuppli estimates triple digit growth in shipment for PV-solar-semiconductor manufacturer First Solar. First Solar is expected to produce twice as much as leading crystalline solar module Suppliers in 2009. It's estimated First Solar products will grow from 503 MW shipment in 2008 to 1100 MW in 2009. 5 of the top 10 solar semiconductor vendors are estimated to be experiencing a shipment growth rate of exceeding 50%.
The companies estimated with high growth are, Yingli Green Energy, JA Solar, SunPower, Motech Industries, and Gintech Energy. The companies estimated with less growth are Suntech, Sharp Electronics, Q-cells (Negative growth) and Kyocera.

Here is the table:

2009 Rank Supplier Year 2008 Year 2009
Production (MW) Market Share(%) Production (MW) Market Share (%)
1 First Solar 503 7.5 1100 12.8
2 Suntech 494 7.3 595 6.9
3 Sharp Electronics 511 7.6 580 68
4 Q-cells (Negative growth) 574 8.5 540 6.3
5 Yingli Green Energy 282 4.2 430 5
6 JA Solar 277 4.1 400 4.7
7 SunPower 236 3.5 390 4.6
8 Kyocera 300 4.5 390 4.6
9 Motech Industries 272 4 360 4.2
10 Gintech Energy 220 3.3 350 4.1
Others 3065 45.5 3435 40.1
Total 6734 8570

First Solar in 2009 is set to produce 1,100 Megawatts (MW) worth of solar cells, more than double the 503MW it made in 2008. This will give First Solar nearly twice as much production of total solar cells as its nearest competitor, Suntech Power Holdings Co. Ltd.

"First Solar is leveraging its cost leadership to achieve market-share leadership in the global PV solar cell business," said Dr. Henning Wicht, senior director and principal analyst for iSuppli. "The company's proprietary thin-film process is giving it an edge over the competition amid challenging solar market conditions."

"First Solar sells its products at very competitive prices, always undercutting crystalline cells," Wicht said. "With its capability to produce cells at a cost of 89 cents per watt in the second quarter, First Solar is generating stable operating margins, while its competitors are struggling to stay profitable. Despite global oversupply of PV modules, First Solar is continuing to expand and is able to sell nearly all of its finished goods."

Isuppli reasons for First Solar's success is its well-established sales channels in Europe and its own installations for U.S. utility projects. First Solar will be the only company among the Top-4 solar cell suppliers able to gain market share in 2009, iSuppli predicts. The company's portion of global solar cell MW production will rise to 12.8 percent in 2009, up from 7.5 percent in 2008. No.-2 SunTech, No.-3 Sharp and No.-4 Q-Cells all will suffer contractions in total solar cell market share.

First Solar also holds the lowest levels of inventory in the global solar cell industry. Because of this, iSuppli expects the company to actually sell all of its production in 2009, rather than stockpiling it. With inventories throughout the PV supply chain soaring, this give First Solar a significant competitive advantage.
Isuppli website is www.isuppli.com