Solar silicon wafer manufacturer MEMC Electronic Materials’ (WFR) horrible Q2 earnings report should not sink the rest of the solar industry (especially not First Solar (FSLR), they do not use silicon for their solar modules). As AmTech’s John Hardy explains, WFR failures were mostly company-specific and dealt with manufacturing failures, not solar demand problems:
WFR attributed the miss to the premature failure of a heat exchanger in Merano, Italy and a loose pipe fitting caused by a fire in Pasadena , TX….
Given our belief that solar end market demand remained extremely strong during the quarter and will throughout 2009-2010…
The company is expecting a somewhat weaker semi environment than is seasonally typical in 2H08, though this is being offset by strength in solar demand. Solar demand remains robust with no change in spot dynamics, signaling the WFR miss is company specific.
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