Suntech Power targeting 10% Solar cell market share by 2010
Couple of good articles on Suntech Power via Digitimes tells me that Suntech has big plans for the future.
Suntech Power (NYSE: STP) is claiming to be the third largest solar cell supplier after Sharp and Q-Cells. The company also aims to increase its capacity to 1,000 MW (1 GWp) by 2010. Suntech is also projecting that the total global capacity in 2010 will reach 10 peak gigawatt (GWp) thus giving Suntech a 10% market share globally.
Chairman Zhi at the SEMICON China 2007:
- The company’s capacity will have a CAGR reaching 65% through 2010 with an annual capacity reaching 1GWp, translating into a 10% share of the global market.
- The conversion rate for overall solar cells among all vendors will approach 20% in 2008
- Chan foresees Polysilicon pricing may trend up by around 10% or stay flat in 2007, given the persistent growth in demand.
- Zhi also estimated that Suntech Power should see its average selling prices (ASPs) to shrink by about 15% in the same period as more competitors arrive.
The company already announced that they will be opening a thin-film production line. Suntech also hopes to up the conversion rate of thin-film solar cells from the current 6% to 12% in the future.
The 10% market share is certainly ambitious with the current Polysilicon shortage. This further makes me believe that Suntech Power will invest in its own Polysilicon manufacturing unit in the near future. Although, the decline in average selling price is worrisome Suntech won’t be the only manufacturer that will take a hit in the ASP front.
* I own call options of STP
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