Silicon shortage affecting IT & Photovoltaic Market
by William Papolis, Friday Mar 09, 2007 12:45PM EST
Due to phenomenal demand for silicon by the photovoltaic industry (solar panel production), there has been persistent shortages for the last few years. As additional capacity comes online supply issues should be abated by 2008. Taking a look at the chart below you can see the incredible growth in silicon demand by the photovoltaic industry. Last year, 2006, marked the first year demand for silicon by the PV market exceeded the demand by the semiconductor market, which has driven supply for silicon since the birth of the PC (almost 30 years ago). Once upon a time, and not too long ago (a decade or so?), the PV industry lived off the scraps (silicon that didn't meet semiconductor specs) of the semi industry, and that was enough to fulfill the demand for the PV industry. |
PV reps did warn the silicon producers that PV demand was going to rise, and that more silicon plants should be built, but alas they were treated as "green hippies with sandals".
Going forward it looks like the PV market will set the tone for silicon production!
Here are the numbers ...
| Polysilicon supply-demand analysis, 2003-2008 (metric tons) | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | |||
| Semiconductor demand | 17,000 | 19,350 | 20,500 | 22,000 | 23,500 | 25,100 | ||
| Solar panel demand | 9,000 | 11,000 | 16,500 | 22,170 | 25,939 | 33,072 | ||
| Supply | 26,700 | 28,800 | 31,500 | 36,330 | 45,250 | 58,350 | ||
| Excess/(Shortage) | 700 | (1,550) | (6,000) | (7,840) | (4,189) | 178 | ||
Source: JP Morgan, complied by DigiTimes.com, March 2007
Want to share a comment? Click on the "Contact" link below, and send one to us!