Japan-based M.Setek, a subsidiary of Taiwan based flat panel display and PV module manufacturer, AU Optronics Corp (AUO) is to stop production of monocrystalline polysilicon production, due to cost competitive issues.
In a Taiwan Stock Exchange statement, AUO noted that it would incur a one time impairment charge of M.Setek’s equipment and facilities totalling NT$ 6.75 billion (US$203 million), recognised in its fourth quarter 2015 financial period.
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
However, AUO noted that it would continue to operate M.Setek’s ingot/wafer slicing operations at the facilities.
According to PV Tech’s own analysis, M.Setek had less than 10,000MT of direct polysilicon production per annum.
Polysilicon remains in overcapacity mode after more than four years and spot market prices have fallen below small quantity producers cash production cost levels (US$20/kg – US$15/kg) again in 2015.
However, overcapacity also remains in monocrystalline ingot/wafer production, adding to pricing pressures in 2015 of mono-wafers, compared to multi-wafers.
AUO’s PV module operations, BenQ Solar with manufacturing operations in Malaysia produces monocystalline modules but does not have integrated production operations.
