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To: Donald Wennerstrom who wrote (53666)	9/12/2011 1:55:37 PM
From: Sam	1 Recommendation Read Replies (1) \| Respond to of 95515

This is the Asian Way. How China dominates solar power Huge loans from the Chinese Development Bank are helping Chinese solar companies push American solar firms out of the market guardian.co.uk, Monday 12 September 2011 14.10 BST Article history An employee displays a solar panel at a workshop in a factory in Hangzhou, Zhejiang province. Photograph: LANG LANG/REUTERS Armed with tens of billions in loans from the Chinese government, Chinese solar companies have scaled at a rate unthinkable only a few years ago. At the end of this year, there will likely be 50,000 megawatts (MW) of manufacturing capacity in place around the world, with much of that new capacity being developed in China and other Asian countries. (In the year 2000, there were only 100 MW of production capacity worldwide.) In four years, the solar manufacturing sector shifted from being led by a geographically dispersed number of companies to one dominated by Chinese companies. In 2006, there were two companies from China in the list of top ten cell producers. In 2010, there were six, according to Bloomberg New Energy Finance. There are currently only two non-Asian manufacturers in the top ten, and those companies -- First Solar and Q-Cells -- have shifted a lot of their production to Asia. So what happened? How did the Chinese come to completely dominate the solar industry in such a short period of time? Bryan Ashley, the Chief Marketing Officer for Suniva, an American company that produces high-efficiency solar cells in Georgia, doesn't mince words. "The Chinese strategy is very clear. They are engaging in predatory financing and they're trying to drive everybody else out of the market. When you've got free money you can out-dump everybody below cost," Ashley said in an interview with Climate Progress. That "free money" Ashley refers to is the cheap debt provided by the Chinese Development Bank (CDB). Here's how the CDB works its magic. The CDB was originally set up as a "policy bank," to operate as an arm of the Chinese central government, doling out public funding to support central government development programs. Now it is a "joint stock company with limited liability" that often reports to China's national cabinet on certain policy issues. This allows the Chinese government to get involved in CDB activities and direct loans toward projects officials want to support. Unlike most regular commercial banks, CDB raises most of its money via long-term bonds. Funders cannot take that money back out until the term is up, so the bank can make longer-term loans to Chinese companies. CDB also gives borrowers very low interest rates, and, if the borrower cannot pay back the loan, it may be back-stopped by the Chinese government. This makes it easier, cheaper, and a lot less risky for solar companies to obtain financing. '>http://www.grist.org/i/assets/china-loans-chart&w=630'> In 2010 alone, the bank handed out $30 billion in low-cost loans to the top five manufacturers in the country. (See chart above.) This has enabled China's solar producers to grow to GW scale in a very short period of time, turning the country into a leading exporter of solar and pushing down prices dramatically. From a project development perspective, those steep price drops are a very good thing. But manufacturers trying to make product outside of China and other Asian countries are getting hit hard. "Free money is impossible to compete with," said Ashley. "Even when global demand went down they were able to keep producing, producing, producing," said Ashley. "And now they're dumping. If something isn't done, there will be no American product left on the market." Allegations of solar panel dumping have been made before in Europe and the U.S., but they have never been proven. In 2009, Suntech CEO Shi Zengrong explained in a conference call that his company was selling panels below marginal costs. But he reversed his statement shortly after, saying he misunderstood the reporter's question. With Chinese producers in a far more dominant position than in 2009 and a slew of solar manufacturing facility closures announced in the U.S. in recent months, concerns about dumping have resurfaced. Just yesterday, Oregon Senator Ron Wyden sent a letter to President Obama asking him to investigate whether or not Chinese companies are selling product below cost in order to push American producers out of the market. He also called on the administration to implement a trade tariff on Chinese modules: Letting that happen is unacceptable. Please know that if your administration is unwilling to take the appropriate steps, with haste, I will advance a legislative effort, as provided by the U.S. trade remedy laws, to ensure that the American solar industry is not harmed by unfair trade. Wyden's letter comes after the high-profile bankruptcies of American solar manufacturers Solyndra and Evergreen. While a variety of technological and market-based factors contributed to the demise of these companies, the Chinese competition -- driven by cheap, easy debt -- played a central role. Remarkably, even with all the pressure from China, the U.S. is a net exporter of solar products to the country. A new report issued by GTM Research and the Solar Energy Industries Association shows that America had a $247 million solar trade surplus with China in 2010, mostly because of polysilicon and equipment shipments. "Yeah, that's great. But we're just sending the raw materials and buying back the finished goods," explained Suniva's Bryan Ashley. "That's a going-out-of-business strategy. Pretty soon they'll figure out how to produce quality polysilicon and they'll be doing it all themselves. We need to re-learn how to make things in this country." Ashley would like to see a Buy America provision for certain installation programs and investigation into the dumping issue. But rather than engage in trade battles, GTM Research's Director of Solar Shayle Kann believes that America needs to put its focus on technological innovation. Testifying in front of the House Natural Resources Committee yesterday, Kann explained the strategy: It will be difficult for the U.S. to compete with China at its own game -- namely, high-volume manufacturing of a commoditized product -- given the cost advantages available for Chinese manufacturing. However, the U.S. can and should continue to develop and commercialize innovative technologies that offer lower costs than traditional panels. These new technologies are generally proprietary, require a more skilled labor force, and are difficult to duplicate. Suniva could be considered part of this category. Using a unique cell design, the company has created a high-efficiency mono-crystalline solar cell that could compete with SunPower. But with all the cheap debt that the Chinese government is throwing at domestic companies, Suniva is finding it increasingly tough to stay in the U.S. "If something isn't done, no one will be making solar PV in the U.S.," said Ashley. The situation is a difficult one. China's domestic efforts are helping drop the price of solar at an astonishing pace -- something that everyone in the solar industry wants. But it's also making it extraordinarily difficult for American solar manufacturers to compete. The United States invented the modern solar cell over a half century ago. As China continues to boost domestic solar companies, the American solar industry will be asking some hard questions about how -- and if -- solar manufacturing can ever make it in a big way in the U.S. guardian.co.uk

To: Donald Wennerstrom who wrote (53666)	9/12/2011 10:14:26 PM
From: Return to Sender	2 Recommendations Read Replies (1) \| Respond to of 95515

From Briefing.com: 4:30 pm : The stock market settled with a solid gain after it had been down in excess of 1% amid heightened concerns about fiscal and financial conditions in Europe. Speculation that a few of France's primary financial institutions -- Societe Generale, BNP Paribas, and Credit Agricole -- might be hit with a debt downgrade called into question the health of the country's financial system. Of course, such consideration comes in addition to the already precarious conditions in the eurozone periphery. Amid fears of contagion, Europe's bourses were cut down and domestic markets opened with marked losses. A bout of buying interest took the major US averages upward in the early going, but the effort lost momentum when the Dow and S&P 500 attempted to turn positive. The Nasdaq was able to find higher ground with help from internet retailers and semiconductor stocks, which were bolstered by news that Broadcom (BRCM 33.07, -0.37) will acquire NetLogic (NETL 48.12, +16.21) for $50 per share, or a premium of more than 55% over its closing price last week. A lack of positive leadership left stocks to drift lower in afternoon trade. Yet the rumor that a sovereign wealth fund from China was talking with Italy about a bond purchase prompted a broad-based bounce. Sellers attempted to reapply pressure in the final hour, but stocks were able to overcome the resistance. That squeezed out some sellers, giving the market's late rise added momentum. Financials made one of the stronger moves. The sector settled with a 1.2% gain as bank stocks bounded to give the KBW Bank Index a 1.7% gain. Materials made up the only major sector that failed to put together a gain. The sector's 0.8% loss was underpinned by weakness among metals and miners issues, which left the SPDR S&P Metals and Mining ETF (XME 54.99, -0.67) to log a loss in excess of 1%. The late barrage of buying interest helped pull the Volatility Index back below 40 after it had been up more than 10% to trade above 43 at midday. The dollar had a rather volatile day, though. It set a six-month high against a basket of competing currencies overnight, but drifted lower to start the trading day with a slight loss. The greenback eventually battled back, but ended the session near the flat line. Treasuries had a rather quiet session until they ticked lower as stocks staged their late-session surge. Treasuries showed little response to the latest auction of 3-year Notes. Advancing Sectors: Tech +1.3%, Financials +1.2%, Consumer Discretionary +1.2%, Utilities +0.9%, Telecom +0.7%, Energy +0.5%, Health Care +0.4%, Industrials +0.1%, Consumer Staples +0.1% Declining Sectors: Materials -0.8%DJ30 +68.99 NASDAQ +27.10 NQ100 +1.3% R2K +0.9% SP400 +0.6% SP500 +8.04 NASDAQ Adv/Vol/Dec 1418/1.98 bln/1162 NYSE Adv/Vol/Dec 1440/1.09 bln/1576 4:07PM Intersil lowers Q3 revenue guidance; sees Q3 revs $184-188 mln vs $208.97 mln Capital IQ Consensus Estimate (ISIL) 10.65 +0.19 : The co now expects its third quarter revenue to range from $184 mln to $188 mln, versus previous guidance of $205 mln to $213 mln and $208.97 mln Capital IQ Consensus Estimate. "Demand during the third quarter has been weaker than expected in all of our end markets. We believe this is the result of broad-based economic weakness, along with some excess inventory consumption. However, we now see signs that inventory is stabilizing, with bookings likely recovering to consumption rates during the remainder of the third quarter." As previously announced, third quarter 2011 GAAP earnings will be impacted by ~$8 mln in non-cash costs associated with the long-term debt refinancing. 4:05PM Sunpower announces proposal to reclassify Class A and Class B common stock into a single class of common stock (SPWRA) 11.98 +0.16 : Co announced that its board of directors has authorized and will recommend that shareholders approve a proposal to reclassify all outstanding shares of the company's Class A common stock and Class B common stock into a single class of common stock on a one-for-one basis. The new common stock will have the same voting powers, preferences, rights and qualifications, limitations and restrictions as the current SunPower Class A common stock... As previously disclosed, Total (TOT) Gas & Power USA, SAS, who currently holds a majority of SunPower's outstanding Class A common stock and a majority of its outstanding Class B common stock, has agreed in the Tender Offer Agreement with SunPower to vote all shares acquired in the tender offer in favor of the reclassification. 12:26PM MIPS Tech: Starboard Value (9.1% owner) delivers letter to MIPS; Believes deeply undervalued, meaningful opportunities exist, urges to discontinue pursuing acquisitions (MIPS) 5.39 +0.23 : Starboard urged MIPS to discontinue pursuing acquisitions and instead focus on improving its operating performance and consider allocating capital to buy back shares at the current deeply discounted valuation. Also, Starboard announced today it has delivered a letter to the Company nominating a slate of candidates for election at the Company's 2011 Annual Meeting, including Robert Kramer, Jeffrey McCreary, Jeffrey Smith and Kenneth Traub. Starboard believes that the terms of three current MIPS directors are set to expire at the 2011 Annual Meeting and if this remains the case, Starboard would withdraw one of its director candidates. Starboard stated that it looks forward to engaging in a constructive dialogue with the Company in hopes of reaching a mutually agreeable resolution that will serve the best interests of all stockholders. 10:10AM Dolby Labs: RIMM signs license agreement covering Dolby Audio Technologies; Dolby agrees to withdraw patent infringement actions against RIMM (DLB) 31.30 -0.18 : Co announced that RIMM agreed to enter into a license agreement for its use of Dolby's advanced audio technologies that were the subject of two lawsuits recently filed by Dolby against RIMM. As a result, those cases were dismissed based on agreement between the parties. "We believe in and will continue to protect the value of our intellectual property," said Andy Sherman, executive vice president and general counsel of Dolby." Note that terms of the settlement were not publicized, but are said to be between $50-100 mln, according to CNBC. EMCORE Corporation (EMKR) announced that it has been awarded a contract by the Mitsubishi Electric Japan to manufacture, test, and deliver solar cells for the TURKSAT 4A, TURKSAT 4B, Himawari-8 and Himawari-9 satellites. S3 Group introduced the result of their collaboration with Broadcom (BRCM), to deliver digital TV broadcast and services to multiple devices within the home including residential gateways, tablets, laptops and other consumer devices. 09:08 am Cree downgraded to Sell at Wunderlich; tgt lowered to $25: . Wunderlich downgrades CREE to Sell from Hold and lowers their tgt to $25 from $34. From a macro perspective they are seeing a weakness in worldwide semi bookings that they believe will accelerate downward near term. CREE's rev is highly correlated with worldwide demand. TXN, a co whose chips are as ubiquitous as LEDs, has already guided lower. These aren't just headwinds. With no hot consumer electronic products this year, high structural unemployment and a consumer that continues to retreat from spending, CREE may be unable to avoid these issues. 10:39 am Technology Sector Trading Higher Today Outpacing The Broader Market (MRVL) The tech sector is trading higher today, outpacing losses the broader market. Semiconductors are showing notable relative strength in the tech space with the Philly Semi Index trading 1.6% higher. Among chips in the index, NETL (+50.2%) is a notable leader. Among other major indices, the S&P 500 is trading 0.4% lower, while the NASDAQ is trading roughly flat. The QQQ, meanwhile, is trading 0.1% higher. Among tech bellwethers, ORCL (-3.6%) is under notable pressure. There were no earnings of significance this morning in the tech space. In news, BRCM (-1.5%) agreed to acquire NETL (+50.2%) for $50/share. NETL peer CAVM (+5.9%) is trading higher on the news. Among notable analyst upgrades this morning, IFNNY (+3.7%) was upgraded to Buy at UBS, and MRVL (+2.3%), ONNN (+0.6%), LLTC (+0.9%), and MXIM (+2.4%) were upgraded to Positive at Susquehanna. Also of note, ORCL (+1.2%) was added to Conviction Buy List at Goldman. Among downgrades, Wunderlich downgraded CREE (-2.3%) to Sell, NIHD (-3.0%) was downgraded to Equal Weight at Morgan Stanley, and DGIT (-3.2%) was downgraded to Neutral at Piper Jaffray. There are no notable names in tech set to report results today after the close. 09:56 am NetLogic To Be Acquired By Broadcom For $50/share (NETL) Broadcom (BRCM $33.21 -0.19) and NetLogic (NETL $47.91 +16.00) announced they have entered into a merger under which NETL shareholders will receive $50 per share in a transaction of approximately $3.7 billion, net of cash assumed. The transaction has been approved by the BRCM and NETL boards of directors. The transaction is expected to close in the first half of 2012. Broadcom currently expects the acquisition to be accretive to earnings per share by approximately $0.10 on a non-GAAP basis in 2012. Broadcom today also reiterated its business outlook for the third quarter of 2011. Broadcom expects revenue around the middle of the previously-guided range of $1.9 billion and $2.0 billion (consensus $1.95 billion), GAAP product gross margins of flat to up slightly and GAAP research & development and selling, general and administrative expenses of flat to down $10 million in the third quarter of 2011.