Sharp, Tokyo Electron form solar cell venture

Japanese chip equipment maker Tokyo Electron said today it formed a joint venture with Sharp (OTC: SCHAY), also based in Japan, to develop production systems for thin-film silicon photovoltaic cells.

Tokyo Electron, the world's No. 2 manufacturer of semiconductor production equipment, will hold 51 percent of the new venture, with Sharp, the world's largest manufacturer of photovoltaic solar cells, holding a 49 percent stake.

Thin-film silicon photovoltaic cells contain a thin layer of silicon deposited on a glass substrate.

The company said the venture, called Tokyo Electron PV and capitalized with $462,320, would work on commercializing chemical vapor deposition systems for the production of thin-film solar.

Tokyo Electron plans to solely handle the manufacturing and sales of the equipment, with the first shipments expected in 2009.

The company said the new systems would be developed by combining its knowledge of vacuum plasma technology for semiconductor and flat panel displays with thin-film silicon photovoltaic cell production technology from Sharp.

In November, Sharp said it would boost its production capacity for thin-film solar cells to 160 megawatts per year, up from 15 MW, citing a growing demand for the cells in Europe (see Sharp to boost thin-film solar capacity to 160MW).

Sharp previously announced plans to build a $3.2 billion thin-film solar and LCD facility in Sakai City, in Osaka prefecture.