Recently, Jiang Yiyan, a researcher at the Industrial Technology Research Institute (ITRI) in Taiwan, China, pointed out that the newly added solar installation capacity in the Taiwan region of China in the first nine months of this year was only 818 MW, a significant decrease of 36.5% compared to the same period last year.
According to a CNA report, Jiang Yiyan proposed policy recommendations to address the industry’s challenges, urging the authorities to provide subsidies for developers using locally produced modules or consider setting limits on the proportion of imported solar cells to boost local product sales. He analyzed that Taiwan’s solar industry exhibits distinct structural characteristics: upstream raw materials such as polysilicon and wafers are highly reliant on imports, with mainland China supplying over 90% of global demand; midstream solar cell production, however, leverages mature semiconductor technology to form a core competitive advantage.
Since 2017, Taiwanese solar companies have expanded into module manufacturing through alliances, gradually integrating the traditionally fragmented market of small-scale system developers. Data from the Taiwan Stock Exchange shows that last year, four companies—United Renewable Energy, Tsec, AUO, and Gintech—led module sales, collectively occupying over 70% of the Taiwan market share, while local manufacturers also saw rising export demand.
However, global market competition is intensifying. Jiang Yiyan emphasized that mainland Chinese manufacturers’ production capacity already exceeds twice the global demand, maintaining a low-price advantage through mature supply chains. Global oversupply has directly impacted Taiwan’s industry. He estimates that the output value of Taiwan’s solar cells and modules this year will fall below NT$38.8 billion (approximately $1.25 billion), a year-on-year decline of over 20%. If the oversupply trend continues, the output value may further drop to NT$32 billion next year.
Expanding into overseas markets has become key to breaking the deadlock. Jiang Yiyan suggested that companies focus on the Japanese and U.S. markets: Japan’s residential environment is similar to Taiwan’s, making products highly compatible; U.S. restrictions on mainland China’s supply chain also create market opportunities for Taiwanese companies. Some companies have already taken the lead—in June, Motech secured annual orders from Japanese clients, United Renewable Energy plans to expand module manufacturing in the U.S., and Tsec has already started module exports to Japan and plans to enter the U.S. battery market in the first quarter of next year.
