Veeco exits CIGS thin-film PV systems business, sees commercial timeframe, cost as unacceptable

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

In another sign of trouble in the PV capital equipment sector, Veeco has decided to exit the CIGS solar systems business. Announced as part of the company’s second-quarter financials, the move results in a combined negative impact and backlog removal of approximately $71 million on its Q2 GAAP results.

CEO John Peeler cited “various reasons,” for the decision, “including the improved performance of mainstream solar technologies and the lower-than-expected end-market acceptance for CIGS technology to date. While CIGS remains an important thin-film solar technology, we have determined that the timeframe and cost to successful commercialization are not acceptable to Veeco.”

The company had been active in the sector, making several acquisitions and product launches over the past four years, including the purchases of toolmaker Mill Lane and CIGS developer DayStar Technologies assets in New York state and the rollout of its FastFlex and FastLine equipment systems. Veeco had also landed Global Solar, Daiyang Metal, GroupSat, and others as customers.  

Veeco’s CIGS assets will be not be put up for auction however. Peeler said that the company “intends to transfer our R&D facility, pilot line, technology, and key personnel in Clifton Park, NY, to the College of Nanoscale Science and Engineering (CNSE) in order to support their planned CNSE/Sematech Photovoltaic Manufacturing Consortium (PVMC). We believe the PVMC is much-needed to drive CIGS industry roadmaps, collaboration, market acceptance, and commercialization.”

Veeco had previously been cited as a key industrial partner for the PVMC effort when DOE announced the $57 million award for the consortium’s CIGS efforts in April as part of its SunShot Initiative. The company had also been granted $4.8 million in February “to speed up its efforts to commercialize multistage thermal deposition production systems used to manufacture cost-efficient CIGS cells” as part of the program’s supply chain R&D component.  

Of the more than $51 million in asset impairment and restructuring charges related to Veeco’s CIGS business exit, $33.375 million will be in the form of inventory write-off, $11.125 million in restructuring charges, and $6.211 million in asset impairment. Also, CIGS deposition systems worth about $20 million have been removed from the company’s backlog.

Effective Q3 2011, the company said it will treat its CIGS solar systems business, which operated at a loss, as a discontinued operation. “The closure of our CIGS systems business is expected to have an immediate and positive impact to Veeco’s profitability,” noted Peeler.

For the quarter, the company saw GAAP revenues reach $264.8 million, with income of $19.2 million, largely as a result of strong MOCVD equipment sales to Asian LED manufacturers.

Veeco has not abandoned all of its CIGS business, stating it will continue to sell CIGS thermal sources and other deposition components. It also claims to be a top supplier of MOCVD and MBE equipment to the concentrator photovoltaic (CPV) market.  

22 September 2021
To commemorate the World Energy Storage Day(WESD) on 22 September, being recognized worldwide, Customized Energy Solutions (CES) and India Energy Storage Alliance (IESA) is organising the 5th global conference and virtual expo, which will be held virtually on 22 September 2021. WESD is a global movement initiated by various apex trade bodies working to promote and adopt energy storage, e-mobility & green hydrogen technologies for a sustainable future. The forthcoming edition of WESD is expected to attract global participation with an intent to facilitate bi-lateral trade, market development and new research and innovation, which will invite 100+ countries, 100+ regulators & policy makers, 100+ International speakers,1000+ organisations, 100+ partners & exhibitors and 20,000+ global delegates.
28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.

Read Next

September 17, 2021
BP, Abu Dhabi National Oil Company (ADNOC) and Masdar have partnered up to develop low carbon hydrogen hubs and create decarbonised air travel corridors between the UK and UAE in a deal that will see “billions” of dollars of investment.
September 17, 2021
US utility company Dominion Energy Virginia has proposed 15 new energy projects totalling 1GW of power for the state, which Dominion Energy claimed was the largest group of projects to be submitted to the Virginia State Corporation Commission (SCC)
September 17, 2021
Renewables developer Ørsted has promoted Neil O'Donovan to CEO of its onshore business unit following the resignation of his predecessor in August.
September 17, 2021
A 58.5MW floating PV plant in Thailand, said to be the largest install of its kind in the country, has been connected to the grid, according to inverter and floating solutions supplier Sungrow.
PV Tech Premium
September 17, 2021
PV Tech spoke to investors and analysts about why Brazil is fast becoming an attractive market for solar investment.
September 16, 2021
Vistra Energy has welcomed the enactment of clean energy policies in Illinois which the power generation company said will support 300MW of solar and 150MW of battery storage to be built at nine of its coal plant sites. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK
Solar Media Events
December 1, 2021