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Origin Energy Limited, one of Australia’s leading integrated energy
companies who also emphasize sustainability in its overall operations,
and Micron Technology, Inc. have formed a 50:50 joint venture focused
on the development of solar photovoltaic technology. Micron, based in
Boise, Idaho, is one of the world’s leading providers of advanced
memory and imaging-based semiconductor solutions.
Micron has been attempting to diversify its product portfolio that is highly reliant on fluctuations in volatile memory chip prices, which began falling six months before the recession began. Thus, for over a year, it has sought to develop solar cells and/or lighting-emitting diodes (LEDs) for energy-efficient solid state lighting (SSL), which would also serve to replace obsolete memory chip production facilities in Boise. The company submitted a proposal to the Idaho Division of Financial Management to receive up to $100 million of Idaho's share of the Federal stimulus funds. However, the full proposal was not funded, but it received $5 million in state and federal stimulus dollars to develop LED manufacturing facilities. It was able to hire approximately 50 workers as a result but remained interested in moving into the solar arena as well.
Micron’s expertise in thin-films process development for integrated circuit (IC) devices on silicon wafers, which is applicable to a specific type of silicon solar cell processing, is what helped initiate the interest in a joint venture. Origin has previously produced commercial solar panels using a new silicon wafer, denoted as "sliver" technology, at a facility in Australia. The company has been testing the manufacturing of these unique chemically etched silicon cells at Micron in Boise in recent months, according to sources close to the company. Moreover, the sliver panels are constructed from cells thinner than most solar cells; yet are still highly efficient, as noted on the Origin website. By making the cells thinner, the cost of the silicon raw materials for each cell can be reduced by a significant amount, enabling less expensive solar power.
In general, from a business perspective, it makes more sense to pursue high-brightness light emitting diode manufacturing based on the majority of industry estimates. In addition, there is, by far, significantly less competition in this space, as only Cree and Philips have substantial production in the U.S., whom have disproportionately capitalized on stimulus and other green energy government programs than U.S.-based solar companies. However, high-efficiency, high-brightness LED production is much more complex and requires significantly more expertise than solar processing; that is partially why there are less players in the market globally than for solar.
In any case, as the Phoenix, Arizona area, formerly known as the Silicon Desert, employing approximately 50,000 workers, continues to lose more semiconductor manufacturing due to relocation to other states and overseas outsourcing, the solar and LED space remain a viable option for these local companies to pursue. It is surprising that more local semiconductor companies have not either received stimulus funding for retrofitting plants or developed solar cell or LED portfolios, especially amidst recent state tax incentives, in order to follow the trend of Micron and many others in the semiconductor industry, including notable IC giants such as Samsung, Sanyo, Sony and Toshiba.
However, the Arizona Solar Manufacturing Symposium on Wednesday, January 27 in Phoenix, AZ, bringing in many global leaders in the field, will help stimuluate interest in the creation of a local solar manufacturing industry. In addition, the 3rd Annual AEE Solar Dealer Conference scheduled for February 17-20 in Mesa, AZ will increase the area's visibility for green building and solar installations. Arizona is in need of green jobs, and any jobs for that matter, as it has lost over 300,000 jobs since the recession began and was the first state to lose 10 percent of its workforce.
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