PV R&D Increasingly Driven by Supply Chain, According to Report

A review of R&D spending by cell and module makers finds that it remains very low, particularly in comparison to other high-tech industries.  In c-Si, technology development is relatively concentrated in development consortia, a few large cell and module manufacturers, and equipment suppliers.  The majority of process innovations are currently being generated by the equipment manufacturers.  Patent applications are also dominated by material and equipment suppliers.  All this according to the recently released report on the PV Materials Market by SEMI and Linx-AEI Consulting.

This underscores the need for effective industry collaboration and the absolute requirement that supply chain participants need to have a shared cost reduction strategy as the top line objective of their strategic plan still applies.  This can be achieved through scaling product or process efficiency improvements.  Long term technical developments are potential routes to lower costs and higher productivity.  And, leveraging cost savings through standards across the global supply chain is also an essential part of industry strategy.

The chemicals and materials segment is one area where supply chain collaboration and innovation can benefit the entire industry.  A closer look at advanced chemicals and materials used in PV solar cells and modules shows that it grew by 89 percent in 2010 to $8.6 billion.  The market is projected to grow to a forecasted $22.4 billion in 2015. The outlook for materials sales in 2011 will slow slightly as PV module demand in Germany adjusts to new incentive policies and module prices decline.  Growth resumes in 2012 as new markets emerge, according to the industry report. The growth trend in the aggregate global market for the materials covered is shown below.

PV Cell and Module Chemical and Material Demand

Summaries of the IP filings in the USPTO and WPO show that over 2000 publications were screened in 2010 and the most prolific filers are DuPont and Applied Materials.

Patent Applications by Company, 2010

Trailing with less than 50% of the number of solar patent applications were leaders Sunpower, Sanyo, and LG Electronics.  More patents were filed in process and equipment than PV device or system technology.

The Chemicals & Materials for Photovoltaic Cells and Modules report analyzes the production processes and supply chain trends for the manufacture of cells and materials, as well as examining the emerging materials requirements for novel technologies.  Based on hundreds of interviews with value change participants, equipment producers, consumables suppliers and other organizations from Europe, China, Japan, Taiwan, Korea and US.  The new report includes detailed insights into the demand for silicon, slurries, gases, wet chemicals, precursors, dopants, and other critical materials. 

The report outlines key PV technology developments in major market segments and discusses their implications for materials supply and innovation. In c-Si, critical needs and opportunities include:

• Consistent, high purity silicon Wafers at low cost including cheaper wafering with less surface damage and Si recovery in sawing slurries
• Reduced metallization costs that do not compromise yield or reliability. 
• Improved texturization etches
• Cleaning technology for improved line yield and better cell efficiency
• Implementation of selective emitters for reduced cell shadowing, improved ease of moduling
• Development of rearside contacts
• Improved moduling technologies at low cost

In thin film, the report breaks out important development priorities for all the top technologies.  In a-Si / Tandem, key development areas include high rate microcrystalline deposition technology with low precursor usage, high quality TCO coating technology and optimized texturizing. In CIGS, improvements in manufacturing processes for consistency in scale-up and safe selenization technologies are area of importance.  For CdTe, reliable, long term supplies of Te metal and qualified reclaim routes for modules remain critical issues.

As the industry implements these new technologies, it is opening the door for greater participation from chemicals and materials suppliers and OEMS to drive more innovative solutions.

To purchase this report or download a free sample, visit: 
http://www.semi.org/en/Store/MarketInformation/PVChemicalsAndMaterials

For more information about this report, please contact Melody Song (SEMI) at msong@semi.org or 408.943.7949 or Mike Corbett (Linx) at mcorbett@linx-consulting.com or 973.437.4517.