Sharp to Introduce Thin-Film Solar Modules: Should MEMC Electronics Be Worried?

We picked up on the story that silicon wafer manufacturer MEMC Electronics (WFR) was seeing growth from solar power applications, but after further research we learned that the company does not stand to benefit from the newer thin-film solar technologies. Some observers even consider their numerous recent long-term supply contracts as a sign that the company wants to lock in prices while it thinks they are high. We also pointed out the new capacity being planned as a potential risk factor.

However, it appears that the technology story may be the one to give the greatest fits, as NE Asia Online reports Sharp (SHCAY.PK) plans to Introduce Thin-Film Solar Modules

Sharp Corp will introduce two new thin-film solar (photovoltaic) modules with better temperature characteristics intended for commercial/industrial applications.Compared to polycrystalline silicon solar cells intended for typical residential applications, on top of having superb temperature characteristics, the most outstanding feature of these new cells is the ability to form the silicon raw materials into a layer of only about 2µm onto a glass substrate, which is roughly 1/100th as thick as conventional polycrystalline solar cells. The amount of silicon used is reduced, and the process is applicable to manufacturing cells with large surface areas.

It may not spell the end for MEMC’s sunny outlook, but it does suggest investors may want to apply some sunscreen before looking at the name.