Major technology and manufacturing companies such as Intel Corp and International Business Machines Corp have recently entered the solar power business, signaling a potential trend among corporate giants to take advantage of the increasing demand for clean energy sources. This move has been seen as a positive development for the solar industry, according to Rhone Resch, president of the Solar Energy Industries Association, who made the comments during an interview at the Renewable Energy Finance Forum conference in New York. Resch believes that this marks the start of high-tech and energy companies venturing into solar energy. Solar power is still a small contributor to global energy consumption, but companies that produce solar panels are experiencing rapid growth due to increased concerns about climate change and higher prices for fossil fuels. Companies like SunPower Corp and Q-Cells AG have transformed from small start-ups into billion-dollar businesses in just a few years. Other companies, such as Applied Materials Inc and Cypress Semiconductor Corp, have also entered the solar market, recognizing the similarities between their industries and solar technology. As these companies have found success, others are now looking to enter the fast-growing market. Kevin Genieser, who leads Morgan Stanley's renewable energy investment banking practice, stated that strategic players bring the ability to facilitate large-scale manufacturing in the solar industry. He anticipates an increase in merger and acquisition activity in the sector. Recently, Intel announced the spin-off of its solar technology into a startup 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, with plans to start shipping its solar cells next year, and IBM and TOK intend to license their thin film solar technology in the next few years. Additionally, Robert Bosch GmbH revealed plans to acquire German solar cell maker Ersol for 1.08 billion euros ($1.67 billion) earlier this month. Bosch, the world's largest automotive supplier, is privately owned. Hewlett-Packard Co, the world's largest computer maker, 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 positive development for the solar power industry, with corporate giants showing interest and investing in the technology. Analysts believe that announcements from companies like Intel, IBM, and HP, along with Bosch's acquisition of Ersol, are proof of the long-term potential and credibility of solar power. SunPower's CEO, Tom Werner, also acknowledges the significance of major players like Intel and IBM entering the solar business, as it helps in establishing solar power as a legitimate and sustainable industry. Werner mentioned that IBM and Intel will increase competition, but stated that SunPower's established business has a significant edge. He stated in an interview that this will motivate them to improve. Resch and Pichel also commented that new competitors entering the market are unlikely to harm established companies due to high demand for solar panels. There are people who believe that the large companies entering the solar energy industry may be arriving too late. Ashok Kumar, an analyst at CRT Capital Group, stated that these companies may be behind in building scale compared to other existing players in the market.