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It had to happen sooner rather than later for Applied Materials! What I mean is that they would inevitably win a contract in the solar power space to build a turnkey production line, front-to-back equipment and processes as well as automated factory software. 

AMAT executives have touted for a year that the synergies between solar production and AMAT’s equipment and services portfolio in the chip biz were too good to miss out on. Although AMAT had to acquire Applied Films to fill in the technology gaps, what was expected to happen has now happened with the announcement that AMAT is to supply the world’s first ‘Generation (Gen) 8.5 Thin Film Solar Module Production Line’ to Moser Baer in India. Ultimately, the new factory is expected to produce 200 megawatts by 2009.

The deal puts AMAT on the map as far as the solar industry is concerned, and with the company offering Flat Panel as well as thin film solar technology and processes it will be interesting to see in which area AMAT gains market traction. Of course it could well be both, but it could be an interesting observation.

With the tremendous growth of solar energy projected to continue for many years to come, I am a little surprised that other equipment companies have not put more than their toes in the solar water. Perhaps the news from AMAT will push a few more to get more immersed?