TAIPEI -- Major solar cell companies in Taiwan are going on the offensive now that the market appears to be emerging from the doldrums.

Business was slow from 2012 through last year. The European debt crisis and global oversupply took a toll on the industry. But thanks to a round of consolidation, as well as market expansion in Japan and the U.S., the supply-demand balance is improving.

Taiwan is the world's second-largest solar cell producer, after China. According to Market Intelligence & Consulting Institute, a Taipei think tank, Taiwan's solar cell shipments and prices hit bottom in the October-December period of 2012 and are now recovering.

Neo Solar Power, Taiwan's biggest solar cell maker, posted record sales and shipments in March. AU Optronics, the major liquid-crystal display panel company, has nursed its solar segment back to profitability.

Another sign that Taiwan players are kicking into a higher gear: Major solar wafer maker Sino-American Silicon Products is taking over panel maker Aleo Solar from Bosch, Germany's largest autoparts company. Sino-American Silicon, or SAS, is conducting the maneuver through SCP Solar, a German consortium set up by an SAS unit and other parties. The process is expected to be completed in May or June.

SAS is gaining most of Aleo's assets, including trademark rights and a factory in northeastern Germany with 280 megawatts of panel output capacity. The Taiwan-based company paid only 2 euros ($2.76) for Aleo, which is saddled with debt due to poor earnings.

Meanwhile, AU Optronics this month set up a venture called Star River Energy with several insurance companies. The entity, which runs rooftop solar power plants, is capitalized at 540 million New Taiwan dollars ($17.7 million). AU Optronics owns a 35% stake in the business.

AU Optronics currently has a power generation capacity of 13.3MW. A company official said the goal is to increase that number to 20MW.