| Applied seeks to gain
bigger slice in solar
Mark LaPedus
EE Times
(03/16/2009 12:01 AM EDT)SANTA CLARA, Calif
Continuing its push into alternative energy,
Applied Materials Inc. has rolled out a new production system for solar fabs
that claims to reduce wafer slicing costs.
The Applied HCT MaxEdge is a wire saw, which is one of the critical pieces
of standalone equipment in the solar fab. Resembling the operations of a
sophisticated, high-speed belt saw, the new system slices solar ingots into
ultra-thin wafers down to 120 micron and below in terms of thickness.
The MaxEdge has demonstrated ultra-thin wafers down to 80 micron. Today's
mainstream solar wafers have thicknesses ranging from 200 micron to 160
micron.
The solar wafer is one of the most expensive parts of the crystalline-based
photovoltaic (PV) manufacturing flow. The idea is to slice thinner wafers
for good reason. ''You want to reduce your manufacturing costs,'' said
Farhan Ahmad, global product manager for the Precision Wafering Systems unit
at Santa Clara-based Applied.
Based on the industry's first dual-wire cutting management system, the
system lowers wafer slicing costs by 5-to-10 percent, Ahmad said. It also
drives down the cost of manufacturing PV cells by up to $0.18 per watt, he
added.
Applied, the world's largest semiconductor equipment vendor, is also making
a major push into the booming solar gear market. In 2006, the company jumped
into the solar business, by buying Applied Films Corp. for $464 million.
Applied Films supplies thin-film deposition equipment for making flat-panel
displays, solar cells, flexible electronics and energy-efficient glass.
In 2007, the company acquired Switzerland's HCT Shaping Systems SA for about
$475 million. HCT sells wire saw systems for the production of wafers based
on crystalline silicon (c-Si) substrates.
Then, in the same year, Applied extended its investments in companies making
equipment for the solar cell industry and bought, for $330 million in cash,
privately-held Italian group Baccini SpA. Baccini is a specialist supplier
of automated metallization and test systems for making c-Si PV cells.
Applied also provides ''turnkey'' services in the solar-cell industry, where
the equipment giant will procure its own -- and competitive -- tools for
select solar-panel makers. Applied's so-called SunFab Solar Module
Production Line enables customers to manufacture 5.7-m2 thin-film silicon PV
modules.
The company has put significant resources behind its SunFab efforts, but
reports have surfaced that Applied has experienced some glitches with the
technology. Still, the overall investments in solar have begun to pay off
for Applied. Amid a downturn in its semiconductor equipment business,
Applied has seen its solar tool sales jump from zero in 2006, to $160
million in 2007, to $800 million in 2008.
Solar ups and downs
Recently, VLSI Research Inc. named Applied as the world's largest supplier
of PV cell manufacturing equipment in 2008. But on the other hand, the
overall solar market is slowing, thanks in part to the worldwide financial
crisis.
The overall PV market hit $16 billion in 2008, according to Gartner Inc. The
firm estimated that the solar business will decrease by 1 percent in 2009.
On a gigawatt (GW) basis, the solar market will hit 6.4-GW in 2009, up 24
percent from 2008, according to the firm.
Robert Stone, an analyst with Cowen and Co., has recently cut his estimates
for various solar cell makers amid the credit crunch and falling average
selling prices for panels. Cowen cut its estimates for Evergreen, SunPower,
Suntech and Trina Solar.
The credit crunch has hit solar demand. ''Several contacts mentioned some
improvement in interest by banks and credit costs moving back toward
pre-crisis levels (thanks to low rates). However, credit spreads appear to
vary by brand of module and non-branded product may not be bankable,
regardless of lower ASPs,'' Stone said in a recent report.
It's a mixed picture on the module and polysilicon fronts. Module ASPs
appear to be falling. And for some time, polysilicon, the key material used
in making solar cells, was in short supply. Now, there appears to be ample
supply for polysilicon, thereby driving product prices down.
''Module prices appear to range from $2.00-$2.50, with top-tier Chinese
brands at about $2.20 and European/international brands enjoying a
premium,'' Stone said.
''Despite a weak Q1, spot poly prices seem to be holding about $135-$150/kg.
However, prices could fall toward $100 as more capacity ramps during the
year,'' he said. ''Wafer prices should fall faster than module ASPs, because
silicon is coming down faster than cell and module conversion costs. This
situation should help cell/module companies maintain positive gross margins,
but increases execution risk and potential for more inventory write-downs.''
Not long ago, spot prices for polysilicon were about $400/kg. Right now,
Applied believes that contract prices for polysilicon are about $55/kg.
As a result of these and other trends, the solar equipment market is
projected to slow and see significant consolidation in 2009, according to
VLSI Research. The solar cell and module manufacturing equipment market
reached a value of $4.4 billion in 2008. Growth in the market is expected to
slow to 8 percent in 2009, according to the firm.
Still, there are new solar cell players entering the fray, creating new
opportunities for equipment makers, Applied's Ahmad said. To boost its
efforts, the company is expanding into the solar wafer slicing business.
Slice and dice
Today, Applied claims to be the leader in the arena. Its previous-generation
wire saw, the B5, is an ''industry standard'' with some 500 tools installed
in the market, Ahmad said.
The B5 makes use of a single belt wire cutting system. In comparison, the
MaxEdge features a module that consists of two independently-controlled
belts or cutting wires. The system is driven by four direct drive motors.
The increased power enables 20m/second cutting speeds, without sacrificing
throughput.
As a result, the new system can enable higher throughput and load capacity,
while lowering overall footprint by 30 percent. Compared to the B5, the
MaxEdge can boost load capacity by up to 45 percent and increase output by
50 percent.
Overall, the machine enables thinner wafers at higher speeds. By making
thinner wafers, solar cell makers can reduce the amount of silicon per wafer
and lower the cost-per-wafer of solar electricity, according to Applied.
The tool also features a new wire guide design with zero degree angle in
order to reduce wire breakage. It also has low-inertia pulleys and a tension
system to keep wires uniform during cuts.
Applied has shipped the tool to key beta site customers.
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