Intel Spins Off Solar Start-up

June 17, 2008

Intel has announced that it will spinoff SpectraWatt, a venture that will focus on manufacturing solar cells, which are key to helping people cut their carbon footprint. Intel is leading a $50 million investment in the new company.

SpectraWatt expects to start building their first manufacturing site later this year in Oregon, with the goal of shipping completed cells by the middle of next year.

Andrew Wilson, the former general manager of Intel New Business Initiatives, will take on the role of CEO of SpectraWatt. About the new venture, Wilson said, “The solar industry is akin to where the microprocessor industry was in the late 1970s. There is a lot to be figured out and improved.” The more SpectraWatt is able to match the previous performance of Intel, the more customers will be able to cut their carbon footprint.

A key focus of the new company will be improving the efficiency of solar cells, that is the amount of energy they are able to generate from sunlight. This is seen as a crucial aspect of bringing the technology to the mainstream and helping bigger numbers of people reduce their carbon footprint.

SpectraWatt has already secured customers, as well as a supply of polysilicon, the key component in solar cells and which is currently in high demand around the world.

The announcement from Intel follows a trend of tech giants investing in clean-tech start ups. Examples include Google’s investments in eSolar and BrightSource Energy. More recently IBM and HP have both made clean-energy plays. The tech giants have a lot of knowledge and experience that will be extremely useful in these startups, name the ability to manufacture high volumes of high tech components at a low cost.

For Intel, there is the extra overlap in the use of silicon, which is also a key component of their computer processors.

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