Intel’s Solar Investment Surge

Intel makes its third solar investment in the last month.

Intel Capital continued its surge in the solar market with this morning’s announcement of a $12.5 million investment in precursor chemical company, Voltaix.  Founded in 1986, Voltaix makes electronic chemicals and gases used in semiconductor manufacturing and CVD precursors such as germane, used in the production of advanced PV cells.

Voltaix’ materials are intended for in thin film PV cells using amorphous silicon, CdTe and CIGS (as opposed to wafered silicon).  The market share for thin film solar is only about 10% today but that share is expected to grow significantly over the next few years.   XsunX is one of Voltaix’ customers.

Intel just spun out SpectraWatt with a $50 million investment, joined by Cogentrix Energy, PCG Clean Energy and Technology Fund, and Solon AG.  SpectraWatt manufacturers and supplies PV cells to solar module manufacturers.

Intel’s third recent solar play was a $38 million investment in German company Sulfurcell as part of an enormous $134 million infusion to build a plant to make solar cells using thin film CIS or CIGS. Other investors included Climate Change Capital Private Equity, AIG, Demeter Partners, Zouk Ventures and BankInvest.

On one hand, it’s nice to see a major global player like Intel jump into the solar fray.  On the other hand, they’re more than a bit late in their sudden discovery of the $20B photovoltaic market.

Intel once made a similar discovery of an overheating optical networking market in the late 90s.  They made some big acquisitions and many VC investments but few if any of those bets paid off and they ended up closing, selling, or abandoning those units.  Let’s hope that this is not a repeat of that late entry.