According to Taiwan's Photonic Industry and Technology Development Association (PIDA), multiple factors such as low prices, falling demand in Europe and continuous incentive cuts caused the solar industry to see falling output value in 2012. PIDA stated the 2012 total output value of the solar industry was around US$118.2 billion, representing an on-year decrease of 13%.
Surprisingly, the total output value of downstream system firms grew by 5% on year to US$58.6 billion. PIDA believes the total industry output value will likely rebound in 2013 because firms adjusted capacity utilization rates and prices stopped falling in 2012.
Since the end the of the third quarter in 2012, Taiwan-based solar cell makers have been receiving orders from China and Japan. In December 2012, solar makers saw capacity utilization rate rise to 60-70% from less than 50% in the previous three quarters. Capacity utilization rate for solar makers is expected to reach above 80% in first-quarter 2013.
According to foreign press, Japan's solar installations in 2013 are likely to reach 5GW. This presents a great business opportunity for Taiwan-based solar makers. Nevertheless, the Japan market has many entry barriers, therefore, Taiwan-based solar firms need to cooperate with domestic firms in order to obtain solar projects.