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Tokyo Electron joins Sharp in solar project

Tokyo Electron, a leading maker of semiconductor equipment, is set to develop solar cell manufacturing equipment through a joint venture with Sharp in an effort to capitalise on demand for clean energy. The two Japanese companies plan to develop production equipment for thin-film solar cells. Tokyo Electron will produce and sell the equipment, starting next year. Thin-film solar cells use just 1 per cent of the silicon needed in conventional solar cells. The technology is attractive because, as a result of scarcity, the price of silicon has rocketed to as much as $350 a kilogramme. Japanese companies are at the forefront of thin-film solar cell technology, with Sharp, Kaneka and Sanyo the three big manufacturers. Sharp, the world's leading maker of solar cells, is set to boost output capacity for thin-film solar cells more than tenfold this year, by investing Y22bn ($203m). In western Japan, Sharp, which also makes LCD televisions, is constructing the world's biggest solar cell plant. It will be dedicated primarily to thin-film solar cells and is expected to start operations by March 2010. The joint venture will be capitalised at Y50m, with 51 per cent held by Tokyo Electron and the remainder by Sharp. For Tokyo Electron, it is an attempt to diversify and capitalise on a sector with a growing demand. Thin-film solar cells are more versatile than conventional crystalline solar cells because they are transparent and so can be used as walls that allow light to shine through. Copyright The Financial Times Limited 2008