Upstream Solar PV supply chain is currently facing major backfires as they are in the consolidation phase and the number of companies that will be present in the market
will plunge by 70% in 2013, says Research firm IHS.
IHS Predicts that globally, the total number of companies participating in the upstream of the Solar Industry, which includes wafers, Cells, poly-silicon manufacturing, Solar module production and assembly, is all set to fall from about 500 in 2012 to just 150 by the end of 2013. This Number indicates the shear consolidation affecting the market as there were 650 players in 2011 and about 750 players in 2010.
Mike Sheppard,
senior photovoltaics analyst with IHS says “It would be a major understatement to say that consolidation
is occurring in the PV supply chain this year, and Most upstream PV supply
operations will simply cease to exist, rather than being acquired by
other companies. Most of these suppliers actually have already stopped
production—and will never restart.”
The Strugglers:
According to IHS, the PV polysilicon, ingots, wafers and cell integrated manufacturers will struggle the most, followed by Second and third-tier suppliers of crystalline silicon (c-Si) polysilicon, ingots, wafers and cells also will struggle to stay afloat. Also Thin Film Cell Providers are also expected to see a downfall.
Most of the Integrated Manufacturers are expected to shut offices due to the heavy expenses incorporated in moving ahead in such a market scenario. Also recently reports were out showing that 90% of the Chinese Poly-silicon manufacturers had suspended the Production.
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