More Taiwan firms join in solar chase

Greater China News
Published October 20, 2008
Business Times Singapore

A recent entrant is Ritek, which formed a joint venture with a Dutch firm

By JASON TAN
IN TAIPEI

YES, solar power may still seem something far-fetched to most, but its promising outlook has lured a horde of Taiwanese companies to secure a foothold in the industry.

The island's tech firms, well-known for their strong contract manufacturing capability, have joined in the solar fray to produce everything from materials, modules to cells and panels.

A recent entrant is Ritek Corporation, the world's third-largest Blu-ray DVD maker. Last Tuesday, it announced a joint venture with Netherlands-based Scheuten Solar to produce thin-film solar cells, which are used in solar panels on roofs. The initial capital investment is NT$600 million (S$27.2 million), with each taking 50 per cent stake.

'There is untapped opportunity in solar power,' said Ritek CEO Cordon Yeh. 'With soaring petrol prices and the current credit crunch, prospect of solar industry is shining brightly.'

Industry veterans predict the photovoltaic market worldwide is set to grow exponentially over the next decade. The growth will be fuelled by governments' push for utilities to use low-polluting energy sources and their subsidies in the purchase of solar power systems.

Ritek would utilise its thin-film coating expertise in optical disc production to churn out copper indium gallium selenide (CIGS)-based solar cells. This would make the company the first in Taiwan to use such material, compared to other rivals mainly using silicon, said Mr Yeh.

The company was betting on the faster uptake of CIGS cells as their costs would drop to around US$1 next year, compared to the more expensive amorphous silicon cells, which were expected to drop to the similar price point only in 2011, he added.

The company said the new venture would churn out 30MW output by this year's end, with production capability to rise to 120MW in 2010.

With Ritek entering the scene, there are now more than 40 Taiwanese companies taking part in the solar chase. Of them, at least half are making solar cells, including big names Motech Industries and E-ton Solar Tech, according to Arthur Hsu, an analyst with Topology Research Institute in Taipei.

'Taiwan's firms have the technology know-how in the production of panels and optical discs, among others. This will shorten their learning curve in solar market and enable them to jump into mass production soonest,' he told BT.