Applied Materialsgobbled up all of the assets of Advent Solar, a photovoltaic maker with patented module assembly processes said to be more streamlined and efficient. The deal is yet another example of Applied Materials' sprint to define itself as a formidable force in the solar industry.
The Sunnyvale, Calif., chip equipment maker has seen a lot of solar action recently. At the end of October, it opened its $250 million Solar Technology Center in China, home to more than 400,000 square-feet of laboratories, thin-film solar assembly space and the pilot plant for making crystalline silicon solar modules -- not to mention its 56-kilowatt solar array in the parking lots. It is reportedly the largest non-government advanced solar research and development facility in the world.
Applied Materials has a major advantage in the solar space right now, with many smaller players struggling to stay afloat in an environment of low prices, tight discretionary spending, and limited capital. Some companies that had ambitions to build large solar arrays and plants have had to downsize their plans, turning instead to solar equipment sales. But Applied Materials, buoyed by its revenue stream from other areas of its business, can pour millions into solar innovation and installation without blinking an eye.
That said, solar may be the giant company's salvation in the end. As the chip business remains on unsteady ground (the downturn really hit it where it hurts), it will be looking to solar to pull its weight and supplement revenue in a major way by next year. Advent's manufacturing technology should help it reduce costs and jumpstart productivity within its solar arm to reach these goals. Once fully integrated, it could eventually cut costs of solar panel production by as much as $1 per watt -- although that milestone may be three years away.
Based in New Mexico, Advent Solar had raised an unreleased amount of angel funding from Angels with Attitude, LinkedIn Founder Reid Hoffman and Spring Ventures founder Sunil Paul.
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