Japanese polysilicon supplier problems put SunPower on potential supply search

Facebook
Twitter
LinkedIn
Reddit
Email

SunPower has said that after talks with its various Japanese-based suppliers, none have sustained major damage to their facilities, though “certain operations are currently disrupted due to infrastructure issues,” the company stated.

PV-Tech has highlighted that rolling blackouts have been implemented in the areas electricity is supplied by Tokyo Electric Power Co (TEPCO), covering Tokyo, Tochigi, Gunma, Ibaraki, Chiba, Kanagawa, Saitama and Yamanashi prefectures.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Though this has limited impact on cell and module operations in Japan, also largely unaffected by the earthquake – production of polysilicon and ingots is highly unlikely to be restarted in prefectures expected to suffer rolling blackouts.

However, PV-Tech has received reports that polysilicon producer, M.Setek has been impacted by the disaster with a plant affected by the tsunami, causing damage to facilities and equipment, though it should be noted that specifics and secondary confirmations are not yet forthcoming. 

According to a research note from Jeffries International, M.Setek’s plant in Soma, Fukushima Prefecture and its proximity to Sendai (major tsumani impact zone), had been damaged and that it was making the assumption that the Soma plant would not be in production for the remainder of 2011. The prefecture is also at the centre of the TEPCO operated nuclear power station that has three reactors in potential meltdown with a 20km exclusion zone now in operation.

SunPower did specifically note in its statement that polysilicon supplies from Japan accounted for less than 10% of its total needs for the second quarter of 2011, without mentioning supplier names. Jeffries noted that M.Setek was believed to be a supplier to SunPower.

However, SunPower also noted that it, “would seek to replace any polysilicon from alternate sources to the extent events in Japan warrant such action.”

As a result, SunPower said that it didn’t expect any change in its 2011 production guidance.

Another polysilicon producer, SUMCO has two plants in the north east region but as yet there has been no official statement from SUMCO regarding any possible disruptions to supply.

The Jeffries research note also noted that another major Japanese polysilicon producer, Shin-Etsu had closed three semiconductor wafer plants and had 35%+ share of worldwide semiconductor wafer market.

As M.Setek has only released minimal information concerning disruptions, via its majority shareholder, AUO of Taiwan, SunPower may have covered itself as to the real issue by specifically mentioning polysilicon but didn’t  reveal exact details, due to its supplier yet to specifically provide more detailed information on whether its plant in Soma has suffered longer-term issues.

AUO said previously in a statement that, “According to latest understanding for the time being, all employees and facilities remain safe and no major damage incurred by the earthquake and tsunami is reported. As to when the facilities resume operations will depend on the recovery status of the local infrastructure.”

Jeffries noted that any polysilicon/wafer supply issues in Japan would have minimal impact on the PV industry due to the current availability and multiple sources of supply. 

With most PV suppliers in Japan having given some detail on the initial impact from the natural disaster attention is focused on supply constraints over the coming months, not least from energy supply constraints rather than general infrastructure issues as the majority of PV producers have limited exposure to the problems faced in the north east prefectures.
 

Read Next

September 16, 2025
Sunotec has launched Sunotec Nordic to spearhead solar and hybrid renewable project development across the Nordic region.
September 16, 2025
The SPPC has launched a request for qualifications for 5.3GW of new renewable power capacity, of which solar will account for 3.1GW.
September 16, 2025
Chinese polysilicon producer GCL-Tech has entered into a strategic financing agreement with Infini Capital, a globally renowned investment institution backed by a Middle Eastern sovereign wealth fund.
Premium
September 16, 2025
At RE+, industry leaders pointed to the resilience of the US solar sector, despite challenges brought by the 'One Big, Beautiful Bill' Act.
September 16, 2025
IB Solar is investing INR30 billion (US$340 million) in a 4GW TOPCon solar cell and module manufacturing plant in Jewar, Uttar Pradesh.
September 16, 2025
Two of the major European solar trade associations, the European Solar Manufacturing Council (ESMC) and SolarPower Europe (SPE), have called for EU policymakers to take measures supporting European solar manufacturing.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines