Transcript: Semicon Tech Drives Alternative Development

Aaron Hand, Executive Editor, Electronic Media -- Semiconductor International, 9/28/2007 2:25:00 PM

Listen to the interview (Runtime: 7:38)

Hand: Hi, this is Aaron Hand, Executive Editor of Electronic Media for Semiconductor International. In preparation for Solar Power 2007, held this week in Long Beach, California, I spoke with Alain Harrus, a partner at Crosslink Capital, and a member on the board of directors for SoloPower, a start-up company that has developed a novel electroplating technology for use in solar cell manufacturing.

So, Alain, my understanding is that you spearheaded Crosslink’s participation in a $30M round of Series B financing for SoloPower, which is involved in thin-film photovoltaics? Can you tell me more about why you’re interested in that company, in particular? What’s special about their technology?

Harrus: Absolutely. And in SoloPower, we actually led the Series A round, this was a little more than a year ago. And the $30M round that the company just closed is having met some significant technical mask downs. This is the round of capital to build the first production facility.

Hand: Okay. So, what is special about SoloPower’s technology? What is their strength, in particular?

Harrus: The whole goal in photovoltaics production for modular and cell is trying to produce as low a cost as possible photovoltaic cell. SoloPower uses a technology that inherently is low-cost — we use electroplating, so it’s a technology that comes out of the semiconductor industry. And being able to use this technology, we have the goal to produce very low-cost solar cells.

Hand: Okay. Do you think that the industry is going to find a particular direction to go to get those lower-cost cells, or do you think they will continue to rely for some time on several different technologies?

Harrus: Definitely several different technologies. The mainstream technology today in photovoltaics is silicon-based. More than 90% of all the solar cells being manufactured and installed in the world are all silicon-based. So there is a tremendous amount of process also deriving from the semiconductor industry that is driving down the cost of this manufacturing.

And then you have new technologies coming behind the silicon, including SoloPower, which is a so-called CIGS [copper indium gallium selenide] technology. They are not on the market yet — this is in the next 18-24 months. One of the problems is lowering the cost even more.

Hand: Okay. So I also understand that you are a former CTO for Novellus Systems?

Harrus: That is correct.

Hand: So I would think you would certainly have some perspective on how best the semiconductor manufacturing industry might make a difference in solar cell manufacturing.

Harrus: Absolutely, absolutely. And, again, in both the silicon world and the CIGS, what we’re seeing is a very strong extension of semiconductor processes, equipment, material utilization, and, for that matter, people — human capital — both at the executive level and the entrepreneur level. SoloPower, for example, was founded by a group of people out of the semiconductor equipment industry.

Hand: Oh, okay. And I would imagine solar cells aren’t the only industry that could take advantage of some synergies from semiconductor manufacturing? You’re also involved in evaluating other alternative energy investments. Can you tell me about what other opportunities there might be?

Harrus: Yes. The other very large area where semiconductor technologies also play a great role is in the lighting industry. In the lighting industry, essentially, replacing the 137-year-old incandescent bulb. A portion of the lighting industry relies on light-emitting diodes, and these LEDs are manufactured on wafers the same way semiconductor devices are manufactured on silicon wafers. Here we use a different kind of material; we use something like gallium nitride, for example. And, again, all of the semiconductor industry’s technology and advancements in process equipment and people can be leveraged out there as well. And then the goal is better, more efficient lighting, better utilization of the energy that is produced. In a typical incandescent bulb, 80% of the energy goes out in heat. In an LED, you can significantly reduce this amount of wasted energy and be much more efficient in converting electricity into light.

Hand: So that’s an area. Do you see companies from semiconductor manufacturing jumping on the bandwagon there as well?

Harrus: Yes, both in large companies and also in start-ups. Large companies, I could mention companies like Nichia and Cree. These are companies using gallium nitride or silicon carbide wafers to manufacture and produce LEDs. There are start-ups involved in new materials, new equipment. One of the companies that Crosslink is specifically involved in is a company called Intematix. It’s a company that is a material discovery company involved in the manufacturing and production and the utilization of phosphor, which is also related to the white LED market.

Hand: Any other technologies we should be keeping our eye on? How about fuel cells?

Harrus: Fuel cell is definitely an up-and-coming technology. I don’t have a sign that fuel cell is quite as ready as photovoltaics or solid-state lighting. Not so much from a materials point of view, but fuel cell — the fuel cells market is a very large market, but it’s also a fairly segmented market. Fuel cells for laptop are very different than fuel cells for, let’s say, automobile, or fuel cells for backup generation in a house or in an office. So, because of that segmentation, different technologies come to bear.

Hand: Well, it sounds like there are a lot of different things going on that are very interesting. Certainly some growth markets that companies could become more involved in and a lot of interest from consumers as well. Thank you very much for talking with me today, Alain.

Harrus: Absolutely, Aaron. My pleasure.