According to Finlay Coville, VP and team leader, NPD Solarbuzz, full year end market PV demand during 2012 reached 29.05 GW. The demand is forecast to increase to 31 GW in 2013. China is expected to replace Germany as the leading market for the first time. The global market is likely to have a CAGR exceeding 15 percent, highlighting long term confidence in global PV adoption levels.
Supply vs. demand overview in 2012
The upstream c-Si module/thin-film panel suppliers produced 30.1 GW of new product in 2012. Combined with inventory levels through the value chain, this provided 31 GW of panels to the downstream channels. 29 GW was used for market demand, while 2 GW went to the downstream inventory.
Demand overview 2013
Year 2013 is shaping up as a 31 GW demand year under the most likely scenario. Over 50 percent of the end market demand is projected to come from China, Germany and North America (USA and Canada). 2013 will be a transition year for the emerging PV territories. Both the Middle East and Africa and Emerging Asia will likely reach 1 GW.
PV demand in 2012 accounted for approximately 30 percent of all PV installed globally. The industry growth in 2012 is positive, but set against a backdrop of an industry that had been accustomed to year-on-year growth often exceeding 100 percent. The industry is forecast to return to double digit growth.
PV scenario forecasting continies to show divergent outcomes in 2017. A high market demand scenario assumes a strong economic environment and aggressive PV policies by way of direct incentives and lower regulatory hurdles.
Five-year cumulative demand by geography
Cumulatively, global PV demand is forecast to exceed 230 GW over the five year period to 2017. China is forecast to install 51 GW accounting for over 20 percent. Europe will continue to offer strong regional PV market. North America and Japan will provide over 61 GW of demand. Emerging markets are projected to create over 25 GW of PV demand, more than 10 percent of the cumulative total to 2017.
By application segment, the ground-mount segment will remain the single largest segment over the five years. Residential and non-residential (commercial) segments will continue to be characterized by specific end-user requirements, different supply channels and routes-to-market for upstream suppliers.
The PV industry was configured to supply over 45 GW in 2012. The industry is likely to be in an over-capacity mode in 2013, with balanced supply/demand levels restored from 2015. Market share aspirations remain a key driver for PV manufacturers. During 2013 and 2014, the capacity taken offline is likely to be more than compensated for by newly ramped capacity.
With multi-domain c-Si module production, most panels had efficiencies in the 13-16 percent band during 2012. High efficiency concepts are not likely to strongly influence the module efficiency landscape during 2013 or 2014. If high efficiency cell types gain traction, the share of modules with efficiencies above 16 percent will increase.
In 2012, a wide range of efficiencies were produced, but with levels that do not compete with c-Si modules for space-constrained applications. The range of panels available in the 12-14 percent band is likely to grow strongly from 2015 as leading suppliers benefit from process improvements. Panels below 10 percent efficiency will become obsolete.
Despite end market growth expected, revenues available to each part of the value-chain will see strong declines Y/Y in 2013. This is due to the ASPs declining at a faster rate than the end-market demand growth, within a strong overcapacity environment. Revenues are also unlikely to recover for each value-chain segment until the 2016-2017 period.
What’s with prices?
2012 was the fourth year in a row that c-Si module prices declined and was the largest Y/Y decline. As capacity throughout the PV chain has increased, the oversupply has put further pressure on the ASPs. Declines in pricing occurred further upstream, at the poly, wafer and cell segments.
Tracking SAM revenues fron selling modules into downstream channels is becoming less important to the PV industry. as a number of module suppliers take on EPC and project developer roles.
PV equipment spending
As for PV equipment spending, the most likely forecast sees capacity being added by a select gtoup of tier 1 c-Si makers during 2014. The next cyclic downturn is forecast for 2016-2017. This assumes excess capacity is added in the next upturn.
If we look at the current scope of trade disputes, there are five major markets — EU, USA, India, Canada, China — investigating products being imported, with China featuring in most cases. Most disputes are being pursued by the internal bodies, but several have been referred to the WTO for review. A growing number of emerging PV regions already have domestic content incentives.
PV demand was 29 GW in 2012, and 2013 is forecast to tip 31 GW. 230 GW of new PV demand is forecast between 2013-2017, adding to the 100 GW at the end of 2012. Eighty percent of PV demand in 2013-2017 will come from the top 10 end markets.
Stoke Inc. is an established player in LTE security, commercial Wi-Fi and LTE enablement, and is already engaged research into small cell signaling issues. It will be displaying a range of solutions for the global telecom industry at the forthcoming Mobile World Congress 2013 in Barcelona, Spain.
Outlook for telecom in 2013
First, I asked Stoke about the outlook for the telecom industry in 2013. According to Dave Williams, CTO, Stoke, 2013 will be the year of LTE globally. Deployments will accelerate worldwide. It is significant that Europe, in particular, has woken up to LTE.
Next, large-scale infrastructure suppliers are experiencing shifts in demand. While operators in the Americas and Japan are high spenders, in Europe there are major vendors whose technology posture is while newer players have become rising stars
Further, Wi-Fi as an ongoing force in the industry – with subscribers accustomed to ‘leaving’ their cellular providers for Wi-Fi options, operator services such as international roaming and rate plans are losing their money-spinning potential. 3G data plan revenues are shrinking because of the superior appeal of Wi-Fi to subscribers. Operators must accommodate this reality in their LTE planning.
Williams added that a trend will be the polarization of the device landscape. The Android’s dream of many device manufacturers with one software interface has faded. We’re seeing a polarized landscape of Samsung/Google versus Apple. RIM is struggling and facing further potential challenges as many of its enterprise contracts approach end of life in 2013. Microsoft may emerge as a player in in the tablet area. Look for some M&A activity from unexpected areas. Also, small cells are seen as the answer to spectrum challenges, but the rollouts will be slow for the next two years as the technology matures.
Finally, driven primarily by the popularity of Apple and Samsung personal devices, BYOD – Bring Your Own Device – to work is a ground-up movement that has taken ID departments and security practitioners by surprise. This is likely to push regulatory measures – especially in the area of security – in the relatively near term. Access providers are under even more threat from the security perspective. It is not all bad, though. For savvy operators, there is the prospect of providing trusted, high quality and easy connections to a large proportion of the estimated 7 billion BYOD users worldwide.
It would be interesting to hear about what are Stoke’s plans for the MWC 2013. Williams said, “At MWC, look for Stoke to announce its new generation LTE mobile border access gateway, new LTE signaling capabilities in its Security eXchange and, on the Wi-Fi eXchange side, a new event access offering in conjunction with an ecosystem of partners.”
Stoke’s Wi-Fi exchange gateway solution
Elaborating on Stoke’s Wi-Fi exchange gateway solution, he said the Wi-Fi eXchange is a gateway application that automatically authenticates Wi-Fi attached subscribers and securely links them to their 3G or LTE cellular network services and/or to the Internet.
Wi-Fi eXchange enables the operators to maximize the benefits of service provider Wi-Fi while limiting traffic loads on the mobile core through dynamic, selective traffic steering. Wi-Fi eXchange is an important catalyst for operators seeking to transition from Wi-Fi as merely RAN congestion relief to Wi-Fi as a new service delivery medium.
On Jan. 23, Stoke announced the newly-available Wi-Fi eXchange gateway that is engaged in multiple commercial service trials uncovering new ways for telecommunications operators to incorporate Wi-Fi as a revenue-supporting service. In a single unit, Wi-Fi eXchange introduces a broad set of extremely flexible Wi-Fi management capabilities previously unavailable to mobile broadband carriers.
Wi-Fi Alliance has been instrumental in driving the evolution of Wi-Fi strategies, providing a forum for Wi-Fi operators, equipment providers and hardware manufacturers to develop industry-wide standards and programs which are critical to mass market adoption. The Passpoint certification program, launched in June 2012, has seen significant industry adoption so far.
Thanks to Sheryl Gulizia, senior manager, Worldwide Public Relations, Synopsys Inc., I was able to connect with John Chilton, senior VP of Marketing and Strategic Development, Synopsys. We discussed the global (and Indian) outlook for the semiconductor industry in detail. Dr. Aart De Geus was apparently away on a business meet.
According to Chilton, the semiconductor industry has repeatedly stared down the daunting technical challenges caused by the necessity of Moore’s Law and the inevitability of the laws of physics. Every time, the industry has risen to the challenge and delivered silicon that is smaller, faster and cheaper, and the design and systems companies that were quickest to exploit the new technologies reaped the great benefit.
Power dissipation challenging
One trend that has proven to be especially challenging is power dissipation. Although transistors get smaller, faster and cheaper, chip power keeps increasing. Increasing power and decreasing size could have caused device-melting energy densities, but the industry rose to the challenge with more innovative physics along with smarter design methods and tools.
This time around, the challenge seems more fundamental, with the new nodes offering either better performance or lower power, but not both at the same time, and maybe not at a lower cost. The fundamental driving factor behind innovation has been smaller, faster and cheaper transistors, with the cheaper part making the migration a no-brainer. Unfortunately, this time the new node is not expected to be cheaper.
App processors to drive move to 20nm
Application processors for mobile and cloud-based services will drive the move to 20nm. These applications have the volume and power/performance needs to justify the expected investment required to embrace the 20nm node. Recent product announcements at CES underscore the emergence of the ‘cloud to mobile client’ trend in consumer electronics.
Dell and Wyse unveiled the project Ophelia. Ophelia is a USB memory stick-sized thin client that will plug into any compatible TV or Dell monitor. The device will boot into an Android OS and turn any TV into a portal to access a computer somewhere else. Ophelia works by taking advantage of the MHL protocol and works with any MHL-enabled display. Over 100-million MHL-compliant chipsets have already been shipped, so the opportunities for this type of interaction are growing.
MHL, along with established standards such as USB and HDMI or even future short-range wireless standards, will enable consumers to plug their cell phone into any monitor or TV and consume content via their phone on a larger, more satisfying display.
Coincidentally, on the same day, Samsung announced consumer displays that utilize voice and gesture recognition. These emerging technologies will begin to redefine the way we interact with the cloud. Instead of carrying a laptop, you may end up waving and talking to a TV. In a futuristic presentation, Lexus showed a prototype of a laser-scanning system that is small enough to be mounted on a grill and makes 3-D maps of the environment surrounding a car. This kind of embedded vision technology will make its way into more devices as processor performance increases.
Chilton said that developing such complex systems and applications require a robust verification solution. Chip designers already use complex and exhaustive test benches to test individual blocks and subsystems. Verification engineers will need to move up to the next level and handle the full verification of the SoC within a target system.
Verification of an integrated system will require an integrated verification solution that includes not just simulation but also acceleration, emulation and formal debug. A new, integrated verification platform should combine these existing discrete technologies to offer the productivity needed to realize complex systems with predictable, manageable schedules.
Delivering the hardware simultaneously with a working OS and development kit will require virtual prototypes, which will be used by software developers prior to the release of working hardware.
Happy new year to everyone! Here is an outlook for the electronics and semiconductors sectors in 2013, provided by Jaswinder Ahuja, corporate VP and MD, Cadence Design Systems (India) Pvt Ltd. (Thanks a lot, Pallavi).
First, the past year, 2012, in review.
Globally, 2012 has been a challenging year for the semiconductor industry with the economic slump in Europe and the US. However, the long term outlook remains positive, with Gartner reporting that the growth in the electronics and semiconductor industries will outpace world GDP growth till 2016.
In India, the ambiguity around the telecom market, traditionally the biggest consumer of semiconductor equipment, was the main handicap to growth. On the positive side, the passing of the National Policy on Electronics (NPE) in 2012 promises a much-needed fillip to the electronics ecosystem. In 2013 we expect to see a positive impact in terms of home-grown electronics thanks to the provisions of the Policy.
Worldwide technology trends in 2013
User experience is the driving force behind many of the semiconductor design trends that we will see in 2013 and beyond. Consumers are demanding devices on which games, music, cameras, internet, and other apps all run simultaneously and seamlessly. As a result, mobility, application-driven design, video, cloud and security, all of which enable an enhanced user experience, are the drivers of the electronics and semiconductor world today.
Mobility is the single biggest driver for the semiconductor industry. The pervasiveness of mobility does not only affect the telecommunications industry, but also entertainment, home electronics, automotive and medical electronics.
For example, cutting edge mobile solutions in the healthcare field include devices that can monitor blood pressure and blood sugar levels remotely, and then transmit the readings to the physician for diagnosis and treatment; in the automotive sector, in-vehicle infotainment is expected to be the next big thing and end-consumers can look forward to real-time traffic reports, weather information, and entertainment options from next-generation cars.
Mobility has fundamentally altered how we produce and consume information. In the future, we can expect that devices will go one step further and actually interact intelligently with the user – we see the first steps of that with Apple’s Siri software.
Mobility has also created a completely new market for applications that enable a more interactive and satisfying user experience. It is via applications that system companies differentiate themselves and stand apart from the competition. The need to have applications on all kinds of devices is posing unique challenges to the semiconductor and EDA companies.
Whereas traditionally the hardware (silicon) was built first and then the software was added later, now developing the software and designing the hardware are becoming a parallel process. This gives rise to new EDA technologies that enable early software development using software models of system hardware long before silicon is ready. We will see this new way of designing continue to be a challenge going into 2013.
Per reports from Cisco, video will soon drive more than 90 percent of all global traffic on the Internet. As more and more entertainment and collaboration tools are launched, bandwidth-hungry video traffic will drive growth both in the end consumer market (mobile platforms) and the enterprise space (networking industry).
The cloud is closely intertwined with the growth in mobility – it is the cloud of network servers and backbone equipment that deliver the content and value to all mobile devices. For every 600 smart phones and every 120 tablets, one dedicated server is needed. With the demand for mobiles showing accelerated growth, the need for cloud computing technologies will be another key driver for the semiconductor industry.
Security underpins our information age. The vast amount of data residing in mobile platforms and cloud architectures is extremely vulnerable. As we move into 2013, we foresee a sharper focus on securing data and critical infrastructure from theft and hacker attacks.
How will 2013 turn out to be for the global semiconductor industry? Will there be growth for the global EDA industry? Importantly, how will the Indian semiconductor industry perform in 2013? I asked Jaswinder Ahuja, corporate VP and MD, Cadence Design Systems India these questions.
Outlook for global semicon industry in 2013
First, how is the outlook for global semiconductor industry in 2013 going to be? Ahuja said: “The long term outlook for the semiconductor industry remains positive, with mobility and cloud computing being the key drivers. The global economy is forecast to grow around 4 percent annually through 2016, according to an April 2012 report from the International Monetary Fund (IMF).
“In its June 2012 report, Gartner predicted growth in electronics and semiconductor industries to outpace that of the world GDP growth, at 5½ percent annually to approach $2 trillion for electronics and 6 percent annually for semiconductors through 2016. So, the semiconductor industry outlook remains very positive overall.
“In the near term, multiple challenges will need to be weathered with respect to the global economic climate, especially in European markets. The JP Morgan/GSA Semiconductor Index of Leading Indicators points to a soft semiconductor industry in 2013. However, there are lot of new products in the mobile and tablet space that are driving demand, such as the iPhone 5, Microsoft Surface, and Samsung Galaxy S III.
“The China semiconductor space is emerging as a key market for semiconductor company revenue, and forecasts predict that it will show rapid annual growth rate. The consolidation and M&A activities that we are seeing in the global semiconductor industry also indicate a positive outlook for the upcoming year.
“In India as well, the semiconductor industry will continue to see growth. The injection of funds and other support outlined in the National Policy on Electronics will provide an impetus to home-grown design and manufacturing, which should start gaining traction in 2013.”
Five trends for 2013
What would be the three or five trends likely to be visible in 2013? Ahuja said Cadence sees five big trends that will drive growth in the near and long term. These are: mobility, application driven design, video, cloud and security.
Probably, the most pervasive change in electronics recently has been mobility. When we talk about mobility, it’s just not about smart phones or tablets, but any kind of device which is mobile. Within the mobile space, software applications help system manufacturers and vendors differentiate themselves and stand apart from the competition. The need to have apps on all kinds of devices is driving rapid growth, as well as placing new demands on EDA companies.
The entertainment industry will be the key driver for video, and as the year progresses, we will continue to see more and more products and solutions introduced to tap into the demand. For the semiconductor industry, video will drive growth both in the end consumer market (mobile platforms) and the enterprise space (networking industry).
In many ways, the backbone to mobility is the cloud. With its network servers and infrastructure, the cloud is what delivers much of the content and value to all of those mobile devices. Statistics show that we need one server for every 600 smart phones and one for every 120 tablets. So there is a big need for data centers which can provide support for all the computing and back-end operations.
Security of data in mobile devices and the cloud will continue to be a challenge in the near future. There will be renewed calls to develop products that can protect critical infrastructure and sensitive information from security breaches.
It always gives me great pleasure chatting with Dr. Walden (Wallly) C. Rhines, chairman and CEO, of Mentor Graphics, and vice chairman of the EDA Consortium, USA. 2013 is just round the corner. What lies ahead for the global semiconductor industry is a question on everyone’s lips! How will the EDA industry do next year? For that matter, what should the Indian semiconductor industry look forward to next year?
Three trends for 2013
First, I asked Dr. Wally Rhines regarding the trends in the global semiconductor industry. He cited:
* Growth in communication ICs.
* Growth in the third dimension.
* Accelerated design activity at the leading edge.
Growth in communication ICs: On the macro level, silicon area shipments continue to grow gradually, as do semiconductor unit shipments. However, there’s a major shift in application segments from computing to communications. Communications used to be only one third the size of computing in terms of semiconductor usage.
Communications are expected to surpass computing in terms of semiconductor consumption by 2014 thanks to the rapid growth of wireless applications, the incorporation of computing into communications devices like smart phones and the addition of communications to computing devices like tablet computers.
Growth in the third dimension: Shrinking feature sizes and growing wafer diameters will continue to contribute to the annual 30 percent decrease in the average cost per transistor and average 72 percent unit growth of transistors, but they will do so at a diminished rate. Fortunately, other avenues are emerging that can help sustain the semiconductor industry’s remarkable rate of growth. One largely untapped opportunity is in the third dimension, i.e. growing vertically instead of shrinking in the XY plane.
DRAM stacks of eight or more die are already possible, although they are still more expensive on a cost per bit basis compared to unstacked devices. Complex packaged systems made up of multiple heterogeneous die, memory stacked on logic and interposers to connect the die are evolving rapidly. Layers in the IC manufacturing process continue to increase as well.
Accelerated design activity at the leading edge: Another interesting trend is the recent surge in capital spending among foundries to add capacity at the leading edge. This wave of spending will result in excess capacity, at least initially, which may force foundries to lower prices to boost demand. In fact, capacity utilization data in the last few months shows a dramatic decline in utilization at 28/32nm and 22nm nodes, suggesting that excess capacity is already happening to an extent.
While differences in 28 and 20nm processes—such as double patterning—create challenges, the existing capital equipment is largely compatible with both processes. Such a high volume of wafers and the large available capacity will lead to increasingly aggressive wafer pricing over time. As a result, cost-effective wafers from foundries will encourage totally new designs that would not have been possible at today’s wafer cost.
Industry outlook 2013
So, how is the outlook for 2013 going to shape up? Dr. Rhines said: ”After almost no growth in 2012, most analysts are expecting improvement in semiconductor market growth in the coming year. Currently, the analyst forecasts for the semiconductor industry in 2013 range from 4.2 percent on the low side to 16.6 percent on the high side, with most firms coming in between 6 percent and 10 percent. The average of forecasts among the major semiconductor analyst firms is approximately 8.2 percent.
“However, most semiconductor companies are less optimistic in their published outlooks. This seems to be influenced by the level of uncertainty that exists because of unknown government actions and market conditions in the US, Europe and China.”
Any more consolidations?
It would be interesting to hear Dr. Rhines’ opinion on any further consolidations within the industry. He said: “It is common misperception that the semiconductor industry is consolidating. A closer look at the data shows that the semiconductor industry has been doing the opposite. It has been DE-consolidating for more than 40 years.
“Take the #1 semiconductor supplier, Intel. Intel’s market share is the same today as it was a decade ago. And, the combined market share of the top five semiconductor suppliers has been slowly declining since the 1960s. Similar trends also apply to the top ten and top 50—both are the same or lower than they were a decade, as well as decades, ago. In fact, the combined market share of the top 50 semiconductor companies has decreased 11 points in the last 12 years.
What does 2013 have in store for the global (and Indian) seniconductor industries? Will it do better than 2012 or will it be even? I had a chat with Somshubhro Pal Choudhury, managing director, Analog Devices India Pvt. Ltd recently on this subject. First, I asked about the trends in the global semiconductor industry.
Choudhury said: “Consumer and telecom have driven the growth incessantly for the past decade for the semiconductor industry and will continue to do so. Over the next three years, industry analysts estimate the global industry will grow approximately 6 percent 2013-2016 CAGR.
“Portability and wireless connectivity will continue to drive a significant portion of the industry growth. Increasingly, automotive market is becoming very lucrative as the quantity of electronics going inside automobiles is increasing phenomenally in safety, power train, smart vision and fuel efficiency applications, not to mention the use of wireless connectivity.
“Medical electronics is getting smaller, smarter with better diagnostic technologies while the demand is increasing with aging population, increased longevity and lifestyle oriented diseases. Applications such as in-home patient monitoring will use wireless connectivity to stay in contact with physicians and emergency services.
“Industrial automation, energy and defense sectors are growing with more factory automation, solar energy focus worldwide, electronic warfare and so on. Intelligent, connected, and energy-efficient systems are leading to higher electronics content, with sensors and motors distributed throughout the industrial complex being connected wirelessly.
“Finally, the wireless and wired networks that transmit and receive all these channels of data will be a major driver of growth over the next few years with proliferation of 4G and increasing amount of fiber.”
Outlook for 2013
How is the outlook for 2013 going to shape up? What are the technologies likely to make an appearance and why?
According to Chowdhury, the 4G LTE deployment should be a major applications area driving 2013. To that end RF, high-speed signal processing, and power management will be important technologies to advance the price/performance of 4G networks. MEMS technology continues to find new applications in medical, defense and industrial applications over and beyond the tablets, handsets, gaming consoles and airbag sensors in cars.
Will there be further consolidations within the industry? He added that M&A will continue to play a role in the industry. The companies in the industry are not hampered by their financial abilities to acquire businesses, but identifying complementary opportunities and successfully integrating them is not without risk.
And how does the global EDA industry look like doing in 2013? As per Choudhury, the EDA industry continues to innovate and that pace will continue in 2013. These innovations are not only driven by the challenges of moving to the next node, but also for mixed signal designs, in analog-digital co-simulation and verification domain.
This is a continuation of my coverage of the fortunes of the global semiconductor industry. I would like to acknowledge and thank Mike Cowan, an independent semiconductor analyst and developer of the Cowan LRA model, who has provided me the latest numbers.
May 2011′s “actual” global semiconductor sales is scheduled to be released by the WSTS, via its monthly HBR (Historical Billings Report), on or about Tuesday, July 5th.
In anticipatation of the upcoming May sales release by the WSTS, Cowan demonstrated an analysis capability of the Cowan LRA Model for forecasting worldwide semicon sales; namely, the ability to provide a “look ahead” scenario analysis for 2011′s global semicon sales forecast range as a function of next month’s (in this case May’s) “actual” global semiconductor sales estimate.
The detailed results of the “look ahead” analysis are summarized in the scenario analysis matrix provided in the table below. These results are also discussed in the subsequent paragraphs:
In order to demonstrate this “look ahead” forecast capability, an extended range in possible May 2011′s “actual” sales is selected a-priori; in this particular scenario analysis, a May 2011 sales range (from $23.065 billion to $26.065 billion, in increments of $0.25 billion, was chosen) as listed in the first column of the above table.
This estimated range in possible “actual” May sales numbers is “centered around” the projected May sales forecast estimate of $24.565 billion as gleamed from last month’s Cowan LRA Model run (based upon April’s published “actual” sales numbers). The corresponding May 3MMA sales forecast estimate is projected to be $25.474 billion (NOTE – assumes no, or minor. revisions in either March’s or April’s previously published “actual” sales numbers released last month by the WSTS) .
The overall year 2011 sales forecast estimate for each of the assumed May sales over the pre-selected range of ‘actual’ sales estimates is calculated by the model, and is shown in the second column of the table. The third column reveals the associated year-on-year sales growth estimates compared to year 2010′s actual sales result of $298.315 billion.
The fourth and fifth columns show the corresponding May 3MMA, three Month Moving Average, sales estimates and the corresponding yr-o-yr sales growths relative to May 2010′s 3MMA sales of $24.701 billion, respectively. Finally, the sixth column lists the model’s Momentum Indicator, MI, defined as the percentage delta between the actual May sales result and the previous month’s sales projection for May. Read more…
I am extremely grateful to Stefan de Haan, senior analyst, Photovoltaics, iSuppli Corp., for sharing with me the top 15 global producers of c-Si and thin film solar photovoltaic (PV) modules, respectively during Q3 2010.
First, the top 15 global crystalline module producers (see Fig. 1) — who are the standout performers and why?
He said: “It is still the Chinese integrated suppliers, above all Trina and Yingli. They benefit from a highly competitive cost structure. However, this need not be the most successful business model in future. With increasing cell and module efficiencies, and an increasing need for full automization, European and Japanese companies may gain ground again.”
Now, on to the top 15 global thin film module producers (see Fig. 2)– who are the standout performers here!
de Haan added: “Still, it is First Solar, the company with lowest production cost in the industry and the biggest module producer. CIGS is upcoming, in particular. Solar Frontier also has to be watched.”
Global PV installations to grow significantly in 2011
It is said that global PV installation will likely witness moderate growth in 2011, and that, concerns of oversupply remain. de Haan agrees only partly.
He said: “Global PV installations will again grow significantly in 2011 (2010: 16 GW and 2011: 22.2 GW). Oversupply will not be dramatic in 2011, but in 2012 and 2013.”
Further, if the pressure from decreasing solar cell price continues to increase, will solar cell makers be forced to reduce prices of wafers and poly-Si to reflect costs? According to Stefan de Haan, prices will drop across the entire solar value chain in 2011! Read more…
This is a continuation of my coverage of the fortunes of the global semiconductor industry. I would like to acknowledge and thank Mike Cowan, an independent semiconductor analyst and developer of the Cowan LRA model, who has provided me the latest numbers.
October 2010′s “actual” global semiconductor sales is scheduled to be released by the WSTS, via its monthly HBR (Historical Billings Report), on or about December 3rd.
(Note: The WSTS will supposedly publish its annual Autumn forecast numbers on Nov 30th. This is a deviation from its past, normal practice when it had been typically released during the middle of November. The SIA’s Fall annual forecast announcement was published earlier, on Nov. 4, 2010).
It should be highlighted that October’s “actual” sales result will play a role in whether the overall year 2010 sales reaches at least $300 billion, thereby achieving a global yearly semiconductor industry sales breakthrough (historical high).
Anticipating the upcoming October sales release by the WSTS, Cowan wants to demonstrate an analysis feature of the Cowan LRA Model for forecasting worldwide semi sales; namely, the ability to provide a “look ahead” scenario analysis for 2010′s global semi sales forecast as a function of next month’s (in this case October’s) “actual” global semi sales estimate in order to carry out a sensitivity assessment on attaining the $300 billion sales milestone.
The specifics of the scenario analysis are discussed in the following paragraphs and summarized in the scenario analysis matrix table. Read more…