Taiwan’s second-largest supplier of solar wafers, Lu Minguang, chairman of China-U.S. Silicon Production Corporation, stated: “The global solar energy market will face zero or even negative growth this year, and will face an oversupply situation in the next three years, reshuffle the market, conduct acquisitions and mergers. ""

Lu pointed out that the global production capacity of new photovoltaic power generation equipment may not reach the level of 20GW last year this year, and even less than during the global financial crisis.

Therefore, Lu said that the global total demand for solar cells may be less than 20 GW, far below the total output of 50 GW, prompting suppliers to resort to price wars in order to compete for orders.

According to Lu, one of the main reasons for the market downturn is that European and American photovoltaic power generation projects cannot obtain government subsidies or bank loans.

The other main reason is the overcapacity of China's photovoltaic power generation companies under the support of the government, leading to oversupply in the market. To stimulate demand, Chinese mainland companies reduced their prices, leading to fierce market competition.

Under the conditions of a downturn in the market, regional integration will be unavoidable, and the merger of Taiwanese companies is inevitable. However, Lu believes that due to technological and cost advantages, as well as financial support, Taiwanese companies have greater viability.

Despite the current difficult situation, Lu is optimistic about the prospects of the PV market. He predicted that by 2013-2014, the price of photovoltaic power generation will be equal to the traditional form of power generation price, causing an explosive growth in the photovoltaic power generation market.

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