Polysilicon Shortage Could Persist

The scarcity of polysilicon may persist until 2010 and beginning in 2007 onwards it may affect the silicon chip industry. This polysilicon shortage started some two years ago and now the solar-cell industry has been plagued by it.

Terra Securities ASA, analyst Bruce Diesen claimed that the tightness in polysilicon market is likely to continue two years more than previously forecasted, and may probably continue till 2011. The chief ingredient of silicon wafers as well as solar cells is its material. In 2007, the material can affect the prices in both markets.

Schott AG, solar wafer makers, said that its plant in US is experiencing scarcity of polysilicon material necessary to keep up current levels of production. Schott added that the continuing supply dearth of polysilicon could stop wafer production at their California site.

Solarbuzz says that polysilicon supply was just about 10% in 2006 in the market for photovoltaic materials. In 2007, the rise is likely to remain between 15 and 20 percent, if polysilicon supplies are better paced with demand.

As per the RNCOS report "Photovoltaics - A High Potential Market Opportunity (2005-2010)", US photovoltaic has been losing it market share over the past years. In last decade US accounted for 44% of global photovoltaic market. In year 2005, the US share came down to 7% primarily due to government's negligence.

For further information about Photovoltaics market opportunity please read the report "Photovoltaics - A high potential market opportunity (2005-2010)" published by RNCOS at http://www.rncos.com/Report/IM031.htm

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