HIGH TECH SECTOR LIKES SOLAR

The Silicon Valley crowd loves solar energy.

Bob Keefe, Atlanta Journal-Constitution: “In the past few months, just about every major company in the semiconductor business has joined a rush into the solar industry…”

There is no reason to doubt the sincere impulse of the digital crowd to help resolve the energy and global climate change crises by putting their expertise to work to bring the potential of solar energy to life.

Ralf Muenster, strategic market development director for National Semiconductor Corp.: "Right now these are fairly dumb, passive electronics…We have a whole vision of making these arrays smarter…There's a lot more to come."

There is also no reason to doubt the Silicon Valley folks' self-interest. First, there is the enormous electricity consumption on which the digital world depends; cheaper electricity will certainly make buying electronics more appealing. Second, the profits in the computer industry are flattening out and becoming more like other established industries. Silicon Valley is not interested in normal returns. What attracts attention there is skyrocket potential.

Jim Hines, analyst, tech research firm Gartner Inc.: "[The semiconductor industry] is now a very large market with a somewhat lower annual growth rate…Many of these companies ... are seeing [solar] as the next opportunity for some really high growth potential."

To the Silicon Valley money managers, the high cost of oil and the coming price on greenhouse gas emissions makes New Energy investments especially exciting bets. For the Silicon Valley electrical engineers, solar technology is a lot more familiar and inviting than the engineering associated with giant wind or transmission projects.

How do established solar industry companies like the newcomers?

John Baumstark, CEO, Suniva Inc.: "I think it's fantastic…The fact that these large, established companies are [getting into the business] is a real validation of the space and the market opportunity."

Will it have any other impact on the solar industry?

Only the inevitable one, according to analyst Hines: "We're going to see a great deal of consolidation ... over the next five years or so…"

The semiconductor business is good...(click to enlarge)

More high-tech firms see bright future in solar energy
Bob Keefe, July 16, 2008 (Atlanta Journal-Constitution)

WHO
Major Silicon Valley semiconductor companies (National Semiconductor Corp., Intel Corp., IBM Corp., Hewlett-Packard Co., Advanced Micro Devices Inc.); Computer equipment manufacturers (Tokyo Electron Ltd., Applied Materials Inc.)

WHAT
The semiconductor manufacturing and computer equipment manufacturing industries, seeing its earning potential flattening with wide marketplace acceptance, have moved to the high-growth solar energy industry.

...but the solar business is amazing and getting better. (click to enlarge)

WHEN
- June 2008: National Semiconductor Corp. brought a device to the market that will improve solar panel efficiency in diminished light.
- 2007: World photovoltaic installations rose 60%.
- Predicted for “coming” years: World photovoltaic installations will grow 25%+ every year.
- Predicted for “coming” years: The semiconductor industry will grow 5% every year.
- 2010: Solar cell manufacturing investment will equal semiconductor manufacturing investment.

WHERE
- Silicon Valley, in the San Francisco Bay area of north-central California, is the cradle of the U.S. digital revolution.
- Advanced Micro Devices Inc. is one of the very few Silicon Valley companies that has not yet moved into solar energy.

Just wait 'til Silicon Valley goes to work on these curves. (click to enlarge)

WHY
- Digital expertise is expected to produce cheaper, better, more efficient solar energy.
- Solar industry companies welcome the creative genius and legitimacy conveyed by Silicon Valley companies’ participation.
- Intel will put $38 mill into a German solar company and is spinning off its own solar company.
- IBM is going into business with a Japanese solar company.
- Hewlett-Packard will license technology that could increase solar panel efficiency and cut costs.
- Tokyo Electron Ltd. will work with Sharp Corp. to develop new manufacturing tools.
Applied Materials Inc. is building a new $60 million+ Singapore solar and semiconductor equipment factory.
- Making silicon semiconductors and silicon solar cells is similar. Both use integrated circuits and are made with giant pieces of specialized machinery.

QUOTES
Mark Pinto, chief technology officer, Applied Materials: "The timing is right…"