Japan's solar electronics industry kicks off after subsidies reintroduced

A bright future

22 October 2008 00:00  [Source: ICB]

The government decision to reintroduce subsidies is stimulating Japan's electronics industry, injecting new life into solar technology for domestic and international markets

Isao Hiroki/The Chemical Daily

JAPAN'S SOLAR cell industry has received a welcome boost in its domestic market, with the decision by the Ministry of Economy, Trade and Industry to reinstate installation subsidies from fiscal 2009, ending March 31, 2010. The move aims to promote saving energy and stimulate the domestic economy.

The domestic solar cell market has been sluggish since the subsidies were abolished in 2005. Japan's solar cell manufacturers have instead relied on rapidly increasing overseas demand, particularly in Germany, Italy and Spain, which have put in place incentives to promote solar cells and other renewable energy sources. Japanese market leaders such as Sharp and Kyocera now export more than 70% of their production.

Sharp is enjoying robust growth and has announced plans to expand production capacity for thin-film solar cells to 1GW/year by April 2010 - an output equivalent to that of a nuclear power plant.

The first phase will involve construction of a plant for triple-junction thin-film solar cells, the first of its kind in the world, with capacity of 480MW/year. The company's site in the Sakaihama district of Sakai City, Osaka has an area of 1.27m m2 (13.7m ft2), where large-scale plants for the world's first G10 (generation 10) LCDs and thin-film solar cells are located. Parts and equipment manufacturers such as Corning of the US, and Japan's Dai Nippon Printing are also located in this high-tech district.

Sharp began to switch to thin-film solar cell production from silane gas after it was overtaken in 2007 by Q-Cells of Germany in crystalline solar cell production, due to its failure to procure sufficient polysilicon. Silane gas is also used for the production of LCD panels, so demand from the Sakai site will be substantial, and Japan Air Gases has set up silane gas filling and storage facilities in nearby Ako, Hyogo prefecture to meet this demand.

Major Japanese electronics manufacturers other than Sharp are focusing on crystalline solar cells. SANYO will expand its solar cell production capacity to 600MW/year by 2010. Kyocera recently started up its second Mie-Ise Plant and will also complete a further 500MW/year production system in 2010. Mitsubishi Electric will start up a second plant for polycrystalline solar cells at the Iida Plant of the Nakatsugawa Works, in Nagano, in 2011, expanding capacity from the current 150MW/year to 600 MW/year.

FOCUSING ON OTHER MARKETS

Solar cell manufacturers targeting overseas markets and large-scale solar power generation facilities tend to focus on thin-film solar cells. Crystalline solar cells with high photoelectric conversion efficiency are primarily designed for the domestic Japanese market, where homes are small with a limited roof area and the day is relatively short.

Overseas, space is at less of a premium and the low conversion efficiencies of thin-film solar cells can be offset by setting up a large installation area. As well as being considerably cheaper than crystalline solar cells, the conversion efficiency of thin-film solar cells does not decrease even under intense heat, enabling them to also penetrate regions of Africa and Asia that lack power supplies.

Manufacturing equipment for thin-film solar cells is usually combined with production techniques, making it easier for companies from other industries to move into solar power generation. Equipment manufacturers such as Applied Materials and Ulvac, both of the US, are promoting such turnkey projects in countries such as India and Taiwan.

Tokyo Electron, which has a joint venture (JV) with Sharp to manufacture plasma chemical vapor deposition apparatus for thin-film silicon solar cells, has also made inroads into solar power generation this year. The equipment needed to manufacture thin-film solar cells is similar to that used for flat-panel displays (FPDs). The company sees the solar cell business as a new growth engine, to help counteract the sluggish growth in its bread-and-butter semiconductor and liquid crystal industries.

The chemical industry is also targeting solar cell production, both crystalline and thin-film, in response to signs that electronic materials for semiconductors and FPDs are leveling off. Tokyo Ohka Kogyo (TOK), a leading photoresist manufacturer, announced in June 2008 that it would collaborate with US technology giant IBM on the commercialization of copper, indium, gallium and selenide solar cells - a move it sees as a win-win partnership between a leading IT company and a component vendor, both newcomers to the field. IBM wants to make use of its semiconductor production technology, while TOK is positioning the solar cell business as a new growth engine.

Showa Shell Solar, a subsidiary of Japanese refining and marketing company Showa Shell Sekiyu, and carmaker Honda are developing copper, indium and selenium solar cells, which have the second-highest power generation efficiency, after crystalline solar cells. Showa Shell Solar, for instance, started up its Miyazaki Plant, with a capacity of 20,000kW/year, at the end of 2006.

Its second plant, with capacity of 60,000kW/year, is scheduled to start up in 2009. In addition, the company and Ulvac will jointly start up a 1GW/year production system in 2011. Honda Soltec, a subsidiary of the carmaker, also started up a 27.5MW/year plant in Kumamoto in 2007 and is now ramping up production for exports.

BEYOND SILICON

Compound-based solar cells are also promising, as they are not dependent on polysilicon and are improving in power generation efficiency. However, there are concerns over their heavy dependence on rare metals, which could raise production costs and have an environmental impact.

Major manufacturers producing indium tin oxide solar cells point out that the use of rare metals involves too high a risk. Japanese manufacturers have no plans to get involved in production of high-efficiency cadmium telluride solar cells, which are gaining ground in Europe, because of their possible impact on the environment.

Most Japanese chemical companies are focusing on organic thin-film solar cells, which are seen as offering greater reliability and with fewer safety concerns. Mitsubishi Chemical will have available a prototype with a photoelectric conversion efficiency of 7% in 2010, and is aiming to achieve sales of yen 100bn ($994m) by 2020 from its solar cell business.

Sumitomo Chemical is developing an organic thin-film solar cell with a photoelectric conversion efficiency of 10%. The company established RSL Energy (RSLE) in 2006, a JV with Rose Street Laboratories of the US to develop, manufacture and distribute full-spectrum solar cells, with emphasis on high-efficiency nonsilicon solar cells.

Mitsui Chemicals is stepping up efforts to develop protection films for solar cells. Toppan Printing and US giant DuPont will jointly develop a backsheet business, while Japan's AGC Ceramics is aiming at sputtering targets for thin-film solar cells.

For more on the Japanese chemical industry

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly