Applied Materials pulled the plug this week on its turnkey SunFab line of manufacturing equipment for amorphous thin-film solar cells.
Competitor Oerlikon is making no such concession. The company says it is on target for an aggressive reduction in manufacturing costs – to 70 cents a watt this year – and foresees further reductions next year.
The claims of progress from Oerlikon Head of Market Development Chris O’Brien come as amorphous technology finds itself under assault. With crystalline module prices down 40 percent last year and financing for utility-scale projects under pressure, thin-film is finding the road ahead tough.
Applied’s answer was to pull back from the market and discontinue SunFab sales. The company vows to continue research and development, and to sell production equipment piecemeal.

Oerlikon says its Kai MT production machinery helped improve factory performance - keeping it in front of Applied Materials.
Equipment supplier Oerlikon, on the other hand, is not balking. O’Brien says he expects the global production capacity of amorphous cells to someday rival that of cadmium telluride, presently the most popular thin-film technology. First Solar, the world’s largest solar producer and the only significant maker of cadmium telluride, has about 18 percent of the global solar market.
Amorphous production capacity from manufacturers, such as Sharp and Konica Minolta, will add up, says O’Brien.
Thin-film advocates, such as Oerlikon, argue that a lot of the expected cost reductions have already been wrung from crystalline-cell manufacturing. Price declines will eventually slow.
This will leave an opening for thin film. It is an opening Oerlikon hopes to capitalize on. The company says the cost of thin-film cells made with its equipment will drop to 70 cents a watt by the end of the year, from $1 at the year’s start and a $1.50 in 2008.
This may not enable them to catch those from First Solar, which early this year reached 81 cents. (First Solar is likely to offer a new benchmark when it releases quarterly earnings next week.) But O’Brien sees competition increasing and says more significant cost reductions are expected next year. He declined to offer a target.
He says Oerlikon was able to avoid Applied Materials’ fate by maintaining a technological advantage. First, the company’s micromorph tandem junction technology is generating module efficiencies of 8.5 to 9 percent, up from the 7 to 8 percent of a single junction cell.
Second, the company’s new generation Kai MT production machinery offered a big improvement in factory throughput this year. Added to that, Applied was unable to match the company’s transparent conductive oxide, or TCO, which offered an improvement in efficiency.
O’Brien separately says he sees strong growth in the U.S. market over the next three years. Module sales should almost double this year to 800 megawatts of capacity from 440 megawatts last year. By 2013, analysts project the market should expand to 1,600 megawatts, and that outlook could be too conservative, he says.
How much of that will go to thin film is hard to say.
Posted by Mark Boslet 