Motech Industries: 2024 Revenue Decline and Future Outlook
Motech Industries, a leading solar cell manufacturer based in Taiwan, is projecting a decline in revenue for 2024. This forecast aligns with a broader trend among the country’s solar manufacturers, driven primarily by a significant drop in solar cell prices, which have plunged by over 50% since the year began. Despite the downturn, Motech remains hopeful for a turnaround in 2025 as market dynamics are expected to stabilize.
In response to these market challenges, Motech is focusing on high-efficiency solar cells, which remain in demand despite the broader market contraction. The company has made notable strides in developing n-type tunnel oxide passivated contact (TOPCon) and heterojunction (HJT) solar cells, achieving impressive laboratory conversion efficiencies of 26.5% and 26.3%, respectively. In mass production, its TOPCon cells have reached efficiencies ranging from 25% to 25.5%, while its HJT cells have attained efficiencies between 25.3% and 25.6%.
Additionally, Motech is poised to begin mass production of tandem solar cells by mid-2025, which are expected to deliver even higher efficiencies of 28% to 30%.
Expanding Capacity and Efficiency to Navigate Downturn
To bolster its market standing, Motech is doubling its annual production capacity for TOPCon solar cells from 4 GW to 8 GW by the end of 2024. The company is also developing a new HJT solar cell facility, which will have an annual capacity of 2.5 GW and is scheduled to become operational by mid-2025.
However, Motech’s second-quarter 2024 financial results underscore the company’s current challenges. The company reported a net loss of NT$1.348 billion (US$41.8 million) for the quarter. Its gross profit stood at NT$103 million, a steep decline from NT$1.39 billion in the first quarter and NT$1.43 billion in the fourth quarter of 2023. The net operating loss for the quarter was NT$1.06 billion, a reversal from the NT$416 million net operating profit of the previous quarter.
The company’s second-quarter revenue came in at NT$4.7 billion, down from NT$5.7 billion in the first quarter and NT$6.4 billion in the fourth quarter of 2023. This significant revenue drop is primarily due to the sharp fall in solar cell prices, which decreased from over US$0.20/W at the start of the year to US$0.09/W by the end of the second quarter.
Industry-Wide Challenges Squeeze Taiwanese Manufacturers
Motech is not alone in confronting these challenges. Other Taiwanese solar cell manufacturers, such as URE and Gintung, have also faced financial difficulties in recent quarters. In the second quarter, URE reported a net profit of US$2.9 million, down from US$5.3 million in the first quarter. Gintung, conversely, posted a net loss of US$8.4 million, compared to a net profit of US$7 million in the previous quarter.
The global solar cell market is under significant pressure from overcapacity and fierce competition, particularly from Chinese manufacturers. Their ability to produce solar cells at lower costs has created an intensely competitive landscape—a key factor for investors tracking Chinese solar companies stock—driving prices down and squeezing profit margins for many companies in the industry.
Despite these challenges, Motech remains committed to innovation and efficiency improvements as it works to regain its footing in a rapidly evolving solar market. The company’s focus on high-efficiency solar cells and its planned capacity expansions are central to its strategy for navigating the current downturn and positioning for future growth.
