In 2017, China was the largest producer and demander of solar cells

According to IHS Markit, an international market research institute, crystalline silicon (cSi) cell manufacturers were much more stable in 2017 than the previous year, with only marginal price declines and stronger-than-expected demand, especially in the third quarter when prices rose, monocrystalline silicon products continued to move
towards higher market share.

"The two main reasons for this stable cell price are the higher cost of raw materials and wafers, strong demand, and limited
supply of monocrystalline wafers.
" Karl Melkonyan, senior analyst of solar demand at IHS Markit, explained
.

"Compared to the relatively healthier supply and demand market in 2016 due to oversupply, the 2016 component prices were relatively healthy and experienced tight supply moments," added
Jade Jones, senior analyst of solar markets at GTM Research.
"Prices are expected to show a healthier trend in 2017 as downstream demand in China is more stable
quarter-on-quarter.
As the world's largest PV market, accounting for more than 50% of global installed capacity in 2017, China's seasonal demand trends have a huge impact
on supply and demand trends.
”

Not surprisingly, China remained the largest producer and demander
of silicon cells in 2017.
It should be noted that in November 2017, Tongwei said it would invest $1.
8 billion in two new battery facilities in China, the largest announcement in China, and the move will make it the world's largest producer of solar cells
.

However, for battery manufacturers other than Chinese mainland, Tongwei's announcement may bring adverse news
.
Analysts believe that "Tongwei's huge expansion plan shows that manufacturing costs have been seriously reduced
.
" For example, because Chinese companies represented by Tongwei are the largest and lowest-cost battery suppliers, Taiwanese producers may end up losing market share
sooner than they think.
”