Major technology and manufacturing companies like Intel Corp and International Business Machines Corp have recently entered the solar power industry, indicating a potential trend of big businesses capitalizing on the demand for cleaner energy sources. According to Rhone Resch, president of the Solar Energy Industries Association, these developments signal the direction the solar industry is heading towards, with both high-tech and energy companies venturing into solar power. Solar power is still a small part of the world's energy usage, but solar panel manufacturers are experiencing rapid growth due to concerns about climate change and increasing fossil fuel prices. Companies like SunPower Corp and Q-Cells AG have grown from small startups to billion-dollar businesses in recent years. Now, other companies are entering the solar market, recognizing the potential for growth and success in the industry. Kevin Genieser, who leads Morgan Stanley's renewable energy investment banking division, believes that strategic players in the industry bring the capability for large-scale manufacturing. He anticipates an increase in merger and acquisition activity within the solar sector. Recently, Intel announced the spin-off of its solar technology into a new company called SpectraWatt Inc, while IBM partnered with Tokyo Ohka Kogyo Co Ltd to develop more efficient solar power technologies. Intel is investing $50 million in SpectraWatt, which will start shipping solar cells next year, and IBM and TOK plan to license their thin film solar technology within the next few years. These developments follow Robert Bosch GmbH's recent acquisition of German solar cell maker Ersol for 1.08 billion euros ($1.67 billion). Bosch, the largest automotive supplier in the world, is privately owned. Hewlett-Packard Co, the largest computer maker in the world, recently announced that it would license its clear transistor technology to Xtreme Energetics, a solar power company based in Livermore, California. This move has been seen as a validation of solar power by many, proving that it is not just a passing trend. Analyst Jesse Pichel from Piper Jaffray noted that announcements from Intel, IBM, and HP, along with Bosch's acquisition of Ersol, demonstrate the long-term potential of solar energy. SunPower CEO Tom Werner also acknowledged that with major companies like Intel and IBM entering the solar industry, it is clear that solar power is a legitimate and sustainable option. Werner mentioned that IBM and Intel will increase competition, but he believes SunPower's established business has a strong advantage. He stated in an interview that this just motivates them to improve. Resch and Pichel also noted that new competitors are unlikely to impact established players due to high demand for solar panels. There are still some people who believe that the large companies entering the solar industry now might be arriving too late. According to CRT Capital Group analyst Ashok Kumar, these companies may be behind in building the necessary scale, as many domestic and international players have already established themselves in the market.