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Formosa Sumco Technology announced it is extending its business from silicon wafer production to solar ingot production with production and shipments for Taiwan-based solar cell makers slated to begin in August. Industry players acknowleged the move, citing the substantial gross margin and the company's established advantage in polysilicon supply sufficiency. Formosa Sumco announced the plan during a recent shareholder meeting.
The company will assign 10% of its present 8-inch wafer furnace capacity for the ingot production. Under the adjustment, all furnaces will be fully utilized. Industry sources indicated that the produced ingots will be sliced as 6-inch mono-crystalline solar wafers.
Given that only Sino-American Silicon Products (SAS) and Wafer Works' China subsidiary Solargiga are able to supply 6-inch mono-crystalline solar wafers in Taiwan, and 6-inch mono-crystalline wafers can generate a higher power conversion rate than 5- and 6-inch multi-crystalline solar wafers, the segement is being regarded as a niche market, said industry players. Gross margin from this segment is estimated at 35-45%, or even approaching 50% if the secured polysilicon contract price is low enough.
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