Ever since the discovery of "photovoltaic effect" in 1839 and the first practical photovoltaic cell in 1954, solar photovoltaic power has made great progress, but its development is still much slower than computer and fiber optic communication. The oil crisis of 1973 and environmental pollution in the 1990s greatly promoted the development of solar photovoltaic power generation.

With the continuous improvement of people’s understanding of energy and environmental issues, photovoltaic power generation has increasingly attracted the attention of governments of all countries. Research investment has continued to increase, and policies to encourage and support the development of the photovoltaic industry have also been introduced. In 1997, U.S. President Bill Clinton’s “One Million Solar Photovoltaic Roof Project” symbolized that Japan, as well as Europe, Germany, Denmark, Italy, the United Kingdom, and Spain also began to formulate their own renewable energy bills, stimulating the photovoltaic industry. The rapid development has also become a "cutting tool" for many companies to pursue profits.

Since 2011, due to the sudden drop in the prices of upstream polysilicon materials, the prices of silicon wafers and photovoltaic modules have also plummeted, resulting in a continuous decline in profits of the photovoltaic industry. The photovoltaic industry has fallen into a low profit, and is also inextricably linked to a steady stream of new entrants. Because in many photovoltaic investments, most of the investment has been cut into the middle of the photovoltaic components. Newcomers have “grabbed” and competition has intensified. With the declining demand in the European market this year, the profits of the photovoltaic industry may be further squeezed.

However, from the perspective of global markets and industrial development, the photovoltaic industry still has good prospects. Even if the European market demand turns from rapid growth to steady growth, the future demand of other markets will continue to increase. What's more, being in the middle reaches of the industrial chain facilitates the upstream or downstream expansion of the enterprise, which can be attacked, retired, and kept. The investment will be more robust and safer.

The production equipment industry in the middle reaches of the PV industry was influenced by a large number of companies entering the market in previous years. Market development has been on the rise and peaked in 2010 and the first half of 2011. After that, the deterioration of market conditions and market expectations are not optimistic. Many Photovoltaic manufacturers have cancelled or suspended the expansion plan, and the PV equipment business has gradually entered a trough. According to forecasts, the industry recovery will occur as early as 2013. The recovery is based on the current integration of the photovoltaic manufacturing industry. Because some weaker companies are unable to continue their operations, some production lines are being idled or withdrawn.