MARKETS: Space solar cost index falls 2.46% in August

(SpaceEnergy) The SEI Space Solar Cost Index fell 2.46% in August, its second consecutive monthly decline, as lower aluminium and semiconductor manufacturing costs outweighed firmer packaging and integration costs.

The SEISSCI declined to 110.80 from 113.59 in July, extending its retreat from the record 115.62 reached in June. It has fallen 4.17% in two months but remains 7.57% above its August 2025 level.

Aluminium structures recorded the largest component decline, falling 4.42% to 146.130 from 152.885.

The move follows an easing in aluminium supply concerns. ING commodities strategist Ewa Manthey said in July that Middle Eastern production was “recovering more quickly than previously expected”, prompting the bank to lower its aluminium price forecasts. ING reduced its estimated 2026 aluminium market deficit to around 1.2m tonnes from 1.8m tonnes previously.

Despite the correction, aluminium structures remain 27.34% above their August 2025 level and are still the most elevated component of SEISSCI.

Semiconductor and solar-cell manufacturing fell 2.31% month on month to 93.036. Solar-market consultancy InfoLink reported in late August that pricing sentiment had reversed, with wafer and cell prices coming under pressure.

Advanced inorganic materials slipped 0.13% to 123.141, while semiconductor packaging and integration was the only component to rise, gaining 0.26% to 92.751.

Broader semiconductor investment also remains strong. SEMI president and chief executive Ajit Manocha said in July that artificial intelligence was “accelerating demand for more powerful and efficient chips”, driving investment across semiconductor manufacturing. SEMI expects assembly and packaging equipment sales to rise 9.6% to $6.7bn in 2026.

The August SEISSCI decline therefore indicates some easing in immediate space-solar input costs rather than a broad reversal in supply-chain pressure. Aluminium remains expensive relative to last year, while continued semiconductor investment and advanced-packaging demand could limit further cost reductions.

For spacecraft manufacturers, the index tracks inputs relevant to high-efficiency solar cells, lightweight array structures and specialist packaging. These costs are increasingly significant for high-power satellites, electric-propulsion spacecraft, lunar infrastructure and proposed space-based solar-power systems.