Tales of a Tariff: TSEC Corp Rides Wave of US Sourcing Shift
A Couple of Bucks Makes all the Difference, Huh?
U.S. vendors seek alternative solar cell suppliers, with TSEC optimistic about potential business opportunities
By Lisa Wang / Street-Savvy Wordsmith
Well, blow me down! Looks like TSEC Corp (元晶), the solar cell and module manufacturer, is riding the tidal wave of opportunity, thanks to a sudden,Invasion of the Tariff Titans. That's right—US vendors are on the hunt for some budget-friendly alternatives to their usual solar import suspects, and TSEC Corp is ready to step up to the plate and shine like a solar panel star.
You know what they say: when life gives you lemons, make lemonade—or in this case, when Uncle Sam slaps a punitive 3,521 percent tariff on solar imports from Southeast Asian nations, hope your homegrown solar solution is ready to capitalize.
A Sunny Solution to a US-Made Problem
So, what's driving this surge in curiosity from US vendors? Well, let's be real—cost is the king in the world of business, and these heavy-handed tariffs are making it a royal pain in the pocketbook for vendors to source solar products from Southeast Asia[2]. Seems like TSEC Corp has struck gold with the timing of its diversification efforts beyond Taiwan's borders.
And it's not just a casual dance—this partnership waltz could be what TSEC Corp needs to fill the void left by the waning domestic market, giving the company a much-needed breather. In its Q4 report, TSEC Corp revealed that it's been scouting for overseas business opportunities since 2023, with the goal of increasing the US and Japanese markets' share of its revenues to a whopping 30 percent by the third quarter of this year[3]. Let's hear it for a little global expansion, shall we?
Should Taiwan Follow Suit?
TSEC Corp is casting its gaze beyond the Pacific, but could Taiwan be next in line to join the anti-dumping and anti-subsidy party? In its optimistic assessment, the company suggests that Taiwan might want to launch its very own investigation into those pesky,won't-play-by-the-rules solar imports[4]. Time will tell if Taiwan decides to take a stand against overseas solar companies that seem to be perennially pushing the price envelope.
The Price of the Sun's Favor
Last year was a bit of a roller coaster for TSEC Corp—on the one hand, it faced competition from imported solar products and a slowdown in solar system installations due to the political climate. On the other hand, that competition and slowdown left about 65 percent of the domestic solar market wide open for import products[5]. TSEC Corp's market share slid to 24 percent last year from 30 percent in the previous year.
Despite (or perhaps because of) these market forces, TSEC Corp ended 2023 with a net profit of NT$527 million but slipped into a loss of NT$600 million last year. Translation? A loss per share of NT$1.17 versus earnings per share of NT$1.07 in the previous year[6]. Imagine if Uncle Sam hadn't waltzed in with those tariffs—TSEC Corp might be a very different company today. But hey, that's the life of a solar panel manufacturer in a nutshell, right?
So there you have it—TSEC Corp is riding the revenue wave created by the US vendors' quest for cheaper solar imports. Will Taiwan follow suit, or will TSEC Corp continue to dance on this tide all on its own? Only time will tell. In the meantime, let's toast to the exciting, unpredictable world of solar energy!
[1] The tariffs imposed by the US have made it more costly for vendors in the US to source solar products from Southeast Asian countries. As a result, they are seeking alternative suppliers, such as TSEC Corp, that offer cost-effective solar solutions.
[2] In its Q4 report, TSEC Corp mentioned that the US has imposed tariffs on solar imports from Southeast Asian countries due to allegations of China exporting solar products to the US at unfair prices. The tariffs are making it more expensive for US vendors to source solar products from those regions.
[3] TSEC Corp has been exploring overseas business opportunities since 2023 in order to avoid being overly dependent on the domestic market. It aims to increase the US and Japanese markets' share of its revenues to 30 percent by the third quarter of this year.
[4] The US government launched anti-dumping and anti-subsidy investigations into Chinese solar companies that have allocated operations to Southeast Asia in order to avoid tariffs on Chinese goods since President Trump's first term. TSEC Corp suggests that Taiwan might consider launching similar investigations into unreasonably low-priced solar imports.
[5] TSEC Corp attributes its losses to unfair competition from imported solar products and a slowdown in solar system installations, leading to a slump of 40.7 percent annually in solar module shipments.
[6] TSEC Corp swung into a loss of NT$600 million last year, from a net profit of NT$527 million in 2023. This translates into losses per share of NT$1.17 last year, versus earnings per share of NT$1.07 in the previous year.
- The US tariffs on solar imports from Southeast Asian nations have prompted a search for budget-friendly alternatives, with TSEC Corp, a solar cell and module manufacturer from Cambodia (元
