Filed under: News | Technology News


Dark American Cloud Over Taiwan Solar Panels

Feb 26 2014, 1:26am CST | by

1 Updates
Dark American Cloud Over Taiwan Solar Panels

YouTube Videos Comments

Full Story

Dark American Cloud Over Taiwan Solar Panels

Taiwan’s solar technology industry, the world’s second largest, faces U.S. government trade sanctions after selling components to Chinese producers that shipped finished modules onward to the United States. Word in Taipei: They’re not guilty but might be hit anyway as the U.S. tries to protect local makers against red-hot imports.

The U.S. Department of Commerce will decide whether findings by its International Trade Commission Feb. 14 merit anti-dumping penalties against Taiwanese exporters. Taiwanese makers of photovoltaic cells for finished Chinese modules are bracing for a harsh verdict as the commerce department crunches financials to determine how much Taiwan’s industry made from the fourth quarter of 2012 to the third quarter of last year. A final verdict is due in August. Taiwanese suppliers stood a 50-50 chance of profiting then, says the Market Intelligence & Consulting Institute, a government-backed IT industry research group.

Taiwan is innocent, it says, but solar components could be slapped anyway as the United States frets about a trend of lower priced imports.

“Their substantially low utilization rates can serve as a testament to the lack of intention to dump products,” institute senior analyst Sean Kao says. “A rational interpretation of the criteria will not provide sufficient support for the U.S. government’s decision to impose anti-dumping and countervailing duties on Taiwanese PV cell vendors. However, many Taiwanese vendors are still pessimistic about the possible final ruling, expecting that the United States will hurt Taiwan based on the consideration of its own benefits.”

Taiwan’s solar tech industry took off about 10 years ago along with global growth of solar energy. Its capacity of 8,000 megawatts per year ranks it as the world’s second largest industry after China’s. It produced about 6,300 megawatts worth last year. Industry stars are Neo Solar Power, the largest maker in Taiwan and second in the world. Delta Electronics, founded by multimillionaire Bruce Cheng, is Neo’s biggest shareholder with a 17% stake. Gintech and Motech are other top manufacturers. Product-specific sanctions could technically raise tariffs on any of them, with levels above 10% likely hurting orders and outraging Taiwanese exporters.

Taiwan had no way of knowing the Chinese module makers would export to the United States, says Arthur Hsu, analyst with Taipei-based market research firm TrendForce. The U.S. government imposed anti-dumping duties on Chinese solar panels on Chinese solar panels imported since October 2012. “Taiwan just got stuck in this,” Hsu says. “To sell outside is China’s own decision. Taiwan is a supplier to the Chinese side, and we can’t go and ask where the modules will sell.”

The threat of sanctions started last year with an International Trade Commission complaint from SolarWorld Industries America. The U.S. government may back its cause because solar imports claim more than 30% of domestic demand and cost 10%-15% less, Hsu says. “We don’t think Taiwan affected U.S. businesses,” he says. Whether U.S. officials pursue them is “hard to say.”

Source: Forbes


You Might Also Like


Sponsored Update


More From the Web

Shopping Deals


<a href="/latest_stories/all/all/31" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.




blog comments powered by Disqus

Latest stories

How To Delete Your Facebook Email Address
How To Delete Your Facebook Email Address
Four years ago, Facebook gave all of its users an email address they never asked for. Two years ago, they tried to force all their users to actually use it. This year, after buying private messaging...
The Rise and Rise of Bitcoin Movie Paints Rosy Picture
The Rise and Rise of Bitcoin Movie Paints Rosy Picture
Two brothers from Pittsburgh, Pennsylvania, Nicholas and Daniel Mross, are the director and star, respectively, of the first Bitcoin documentary to hit the big screen, getting its premiere at the Tribeca Film Festival...
World War III Could Start In Space
World War III Could Start In Space
Nearly a century after Robert Goddard launched his first liquid-fuel rocket, we are now inextricably linked to the hundreds of spacecraft which race around our planet at speeds that would make Chuck Yeager envious. But...
Tu-95 Bombers: Russian Bombers in Tu-95 Bears warded off by NATO
Tu-95 Bombers: Russian Bombers in Tu-95 Bears warded off by NATO
Two Russian bombers in TU-95 Bears that had entered into Dutch and British airspace were warded off by three NATO members. Dutch, British, and Danish jets scrambled to fly them out of their airspace.

The Hottest Photos of Victoria's Secret Fashion Show 2013