Japan-based PV vendors, including Sharp, Kyocera, Panasonic and Toshiba, are likely to return to the international market in 2016 and release OEM orders to Taiwan-based module makers, according to industry sources in Taiwan.
Japan-based PV vendors have been absent in the international market for nearly two years because they have been focusing on the domestic market where demand has been fast growing due to handsome feed-in tariff subsidies offered by the Japan government, the sources indicated.
In order to minimize production cost, Japan-based vendors have reduced in-house assembly of own-brand modules made using cells from Taiwan makers and outsourced more to China-based module makers, the sources noted. In order to compete for OEM orders from Japan-based vendors, Taiwan-based module makers have been expanding production capacities, the sources added.
The Japan PV market is expected to reach saturation in 2016 and then domestic vendors will be forced to reenter the international market. They are likely to place OEM orders with Taiwan-based PV module makers if their pricing is as competitive China-based ones, the sources said.