INTERVIEW: Taiwan’s TSEC CORPORATION – mover and shaker in the nation’s solar sector

A leading name in the Taiwanese solar sector, TSEC has seen its valuation on the Taiwanese exchange skyrocket in recent months. As such, Newsbase’s AsiaElec sat down with Assistant Vice President in the Global Sales Department – Keiji Yasukawa – earlier in the month, at the firm’s Taipei HQ to ask some questions.

How is TSEC CORPORATION adapting its product strategy for the Japanese market given over a decade of presence in-country, and what segment presents the biggest opportunity?TSEC was established in 2010 and operated in the Japanese market from 2012 to 2018. During that period, we focused mainly on PERC cell sales, while also supplying modules manufactured at our own factory.

From 2018 to 2024, we concentrated on our domestic market to meet strong local demand. As that demand stabilised, we re-entered the Japanese market in 2024. Today, our main focus in Japan is the residential sector. We are developing products designed specifically for Japan’s unique roof structures and strict quality requirements. We believe the residential segment currently offers the biggest growth opportunity, especially as homeowners continue to seek reliable and high-performance systems.

Simultaneously, we are also offering modules for commercial and industrial projects. Our salt-resistant design and strong wind-load performance make our products suitable for demanding environments. In addition, we aim to support customers who are diversifying their supply chains by providing a reliable alternative manufacturing source. We will showcase the results of these efforts at PV EXPO, taking place in Tokyo, Japan, from March 17 to 19.

What lessons or competitive advantages has TSEC gained from participating in Japan’s PV sector?

One of the key advantages we have gained from participating in Japan’s PV market is a deeper understanding of high-quality standards and customer expectations. As a Taiwanese manufacturer producing both cells and modules domestically through an integrated system, we benefit from strong trust in Taiwan-made products within Japan.

Simultaneously, we have learned that price competitiveness is essential. In the past, there was a significant price gap compared with Chinese manufacturers, which limited our opportunities despite strong product quality. In response, we carried out factory upgrades and worked with new partners to improve efficiency and reduce costs. As a result, we are now able to offer more competitive pricing in the Japanese market. Our experience in Japan has also helped us improve speed, flexibility, and responsiveness. These lessons have strengthened our overall competitiveness and better prepared us for further expansion.

Aside from Taiwan and Japan, which other Asian markets is TSEC prioritising for expansion, and what unique challenges do these markets pose?

At present, our main focus in Asia remains Taiwan and Japan. However, we are also exploring opportunities in Southeast Asian markets, particularly in countries that are exposed to typhoons and extreme weather conditions.

Our salt-resistant design and strong wind-load performance make our products well suited for these environments, where durability is especially important. Each market, however, presents its own challenges. Regulatory requirements differ from country to country, pricing competition can be intense, and finding reliable local partners is critical. In addition, understanding local business culture is essential for long-term success. For this reason, we take a step-by-step approach. We prioritise building strong local partnerships and enter new markets gradually when conditions are aligned with our strengths.

How do geopolitical dynamics such as Japan-China relations and US market tariffs on Southeast Asian solar imports influence TSEC’s export strategy and brand positioning?

Recent geopolitical developments, including US tariff policies and changes in Japan-China relations, have encouraged many companies to diversify their supply chains. These shifts have created new opportunities for TSEC.

In terms of export strategy, we see growing demand for alternative and reliable manufacturing sources outside of mainland China. As a Taiwanese manufacturer with integrated cell and module production, we are well positioned to meet that need. From a brand perspective, these dynamics allow us to strengthen our positioning as a trusted, high-quality supplier. While Chinese manufacturers have traditionally dominated the market, we believe Taiwan-made products offer strong quality, reliability, and supply stability.

Overall, geopolitical changes are accelerating supply chain diversification, and this trend aligns well with our long-term strategy.

Given Taiwan’s domestic solar installation trends and government renewable targets, how sustainable is TSEC’s reliance on the local market compared to overseas revenue streams?

Taiwan faces structural limitations in solar deployment due to its limited land area and geographic constraints. In addition, renewable energy development is closely linked to government policy and installation targets. For this reason, we do not view reliance on any single market as a long-term strategy. While Taiwan remains an important and stable base for our operations, we believe that a balanced revenue structure—including overseas markets—is essential for sustainable growth.

As a Taiwanese company, we remain committed to supporting the country’s green energy transition. At the same time, expanding internationally allows us to reduce market concentration risk and enhance long-term stability. Moreover, we are able to apply insights gained from overseas markets back to Taiwan. For example, the experience we developed in Japan’s demanding residential market can be adapted locally, creating new revenue opportunities and supporting further solar deployment in Taiwan.

How significant is TSEC’s investment in advanced solar technologies including TOPCon, N-type cells, high-efficiency modules, to its competitiveness in Japan and other international markets?

Investment in advanced technologies such as N-type cells and N-type high-efficiency modules is critical to TSEC’s competitiveness. In markets like Japan, where quality, reliability, and long-term performance are highly valued, advanced cell technology and durable module design are essential. These technologies allow us to deliver higher efficiency, better stability, and stronger long-term returns for customers.

To support this strategy, we upgraded both of our factories last year to improve production capacity, optimise processes, and enhance product consistency. We also transitioned from single-glass modules with transparent backsheets to the globally mainstream double-glass structure, strengthening durability and long-term reliability.

For us, advanced technology investment is not optional—it is the foundation of sustainable competitiveness in both Japan and other international markets.

What role does system integration, power plant construction and long-term maintenance services play in TSEC’s business model outside Taiwan?

Outside Taiwan, TSEC primarily operates as a module manufacturer, while system integration, power plant construction, and long-term maintenance are delivered through trusted local partners.

Rather than directly managing EPC projects in every overseas market, we collaborate with experienced distributors and system integrators who understand local regulations and project requirements. Long-term maintenance and after-sales support are critical to protecting product performance and brand reputation. Through our partnership-driven model, we ensure that customers receive reliable technical support and service throughout the project lifecycle. This approach allows us to combine strong manufacturing capability with localised execution and service expertise.

How does TSEC balance production capacity expansion at Taiwan plants in Pingtung and Hsinchu with operational risks such as supply chain pressures and price cycles in the solar industry?

We expand production capacity in a phased and disciplined way, making investment decisions based on realistic market demand rather than short-term trends. At our Pingtung and Hsinchu plants, the goal is not simply to increase output, but to improve efficiency, stabilise processes, and strengthen profitability while maintaining high quality standards.

To manage operational risks, we diversify our supply chain and carefully manage raw material sourcing to reduce exposure to supply disruptions. As pricing in the solar industry is inherently cyclical, we also balance risk by serving multiple markets and continuously upgrading our product portfolio. Ultimately, our strategy is to grow steadily while maintaining financial and operational discipline to ensure long-term sustainability.

TSEC has seen its share price more than quadruple over the past year, as of today trading around TWD$52.2 ($1.63) with strong momentum. What are the main drivers behind this stock price rise?

We believe the recent share price appreciation reflects a combination of factors rather than a single driver. First, increased attention on supply chain diversification—particularly in relation to US tariff policies and Japan market developments—has strengthened investor interest in Taiwan-based manufacturers.

Second, our internal reforms over the past year, including factory upgrades, cost optimisation, and improvements in operational efficiency, have enhanced our competitiveness and may have improved market confidence. In addition, broader market themes—such as growing global interest in AI-related infrastructure and next-generation data centres—have contributed to increased attention toward energy and renewable sectors. That said, share prices are influenced by many variables beyond company fundamentals. Our priority remains strengthening our core business and delivering sustainable long-term value.

To what extent have foreign market developments contributed to investor confidence and the recent stock valuation?

We believe foreign market developments have contributed to investor confidence to some extent, particularly as supply chain diversification has become a key industry theme. Growing interest from the US and Japan, as well as shifts in US tariff policies, have highlighted the strategic importance of Taiwan-based manufacturers. This may have strengthened market attention toward our company.

However, we do not believe that external factors alone explain the recent stock valuation. Our structural reforms, operational improvements, and enhanced cost competitiveness over the past year have also played an important role. In the long term, we believe sustained internal performance—rather than short-term geopolitical shifts—is what ultimately supports corporate value.

Given TSEC’s historical financial performance and future outlook, how does management reconcile short-term market sentiment with long-term profitability and shareholder value?

The solar industry is influenced by policy and market cycles, and it is natural for short-term sentiment to be reflected in share price movements. However, our management approach is grounded in long-term financial discipline. While market sentiment may fluctuate, we focus on strengthening our earnings foundation through structural reform, operational efficiency, and cost competitiveness.

Looking at our historical performance and future outlook, we recognise that sustainable profitability requires continuous adaptation rather than short-term reactions. The initiatives we implemented over the past year were designed to improve resilience and long-term competitiveness, not to influence temporary market perceptions. We believe shareholder value is ultimately built on consistent execution and solid fundamentals. Our priority remains the steady creation of long-term value.