Currently, market rumors abound that some vendors, under immense financial pressures, plan to either liquidate their equipment or use their inventory and equipment as collateral, in order to maintain financial viability. However, related vendors indicate that presently, there is little interest in second-hand equipment. Moreover, as vendors considering the aforementioned measures are already on the verge of bankruptcy, financers are proceeding with extreme caution and there have been few concluded deals. Furthermore, European market subsidy decreases in 2012 were originally expected to spark a wave of installations in Q411, but such orders have yet to be seen.
EnergyTrend, a research division of TrendForce, indicates that the capacity utilization rate of major Si wafer and solar cell manufacturers continues to decrease. Some small and mid-sized makers are even rumored to be considering temporarily ceasing production in order to decrease expenditures in the face of the harsh economy. A portion of financially struggling manufacturers are dumping their on-hand inventory and materials on the spot market in order to secure funds. However, as most vendors currently have little need for spot materials, there is not much interest in the spot market.
Solar energy vendors are also concerned about the status of the financial chain. The solar market is heavily dependent on financial support; thus, if banks become less willing to provide loans, this will be detrimental to the short-term development of the market, which will in turn affect manufacturers’ finances. EnergyTrend has observed that some makers have already reduced or temporarily ceased production, but no one has closed due to financial difficulties as of yet. However, once there is a gap in the financial chain, manufacturers deep in the red will be hit first, and there is a real danger that some makers will go bankrupt.