Both companies will invest 100 billion yen ($925 million) hoping to reap the benefits that thin-film technology promises.
Sharp and Tokyo Electron will set up a joint venture in which the former will have a 49% share and the latter will hold 51% share. Sale of cells will start in 2009.
Demand for thin film technology is growing rapidly due to current shortages in the silicon cells market. Thin film cells have prices that are substantially below their silicon counterparts', therefore they can make solar PV investments more profitable.
Sharp's rivals are at the moment following similar strategies.
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