Large corporations are beginning to invest in solar power, with companies like Intel Corp and International Business Machines Corp leading the way. This shift towards cleaner energy sources may signal a trend as more corporate giants look to take advantage of the growing demand for renewable energy. According to Rhone Resch, president of the Solar Energy Industries Association, these recent developments demonstrate the direction in which the solar industry is heading, with both tech and energy companies starting to enter the solar market. Solar power is still a small part of the world's energy consumption, but solar panel manufacturers are experiencing significant growth due to concerns about climate change and rising fossil fuel prices. Companies like SunPower Corp and Q-Cells AG have seen their market capitalizations grow into the billions in recent years. Other companies, such as Applied Materials Inc and Cypress Semiconductor Corp, have entered the solar market, recognizing the similarities between their industries and solar power technology. With the success of these companies, others are also looking to get involved in this rapidly expanding market. Kevin Genieser, who leads Morgan Stanley's renewable energy investment banking practice, stated that strategic players have the ability to bring large-scale manufacturing to the solar industry. He anticipates an increase in merger and acquisition activity in the solar sector. Recently, Intel announced the spin-off of its solar technology into a start-up named SpectraWatt Inc, while IBM partnered with Tokyo Ohka Kogyo Co Ltd to develop more efficient solar power technologies. Intel is leading a $50 million investment in SpectraWatt, which will begin shipping solar cells next year, and IBM and TOK plan to license their thin film solar technology in the next two to three years. These developments followed Robert Bosch GmbH's recent announcement of its acquisition of German solar cell maker Ersol for 1.08 billion euros ($1.67 billion). Privately owned Bosch holds the title of being the world's largest automotive supplier. Recently, Hewlett-Packard Co, the biggest computer maker, announced that it would be licensing its clear transistor technology to Xtreme Energetics, a solar power company based in Livermore, California. This move has been seen as a significant step towards establishing the credibility of solar power, with industry experts noting that it is not just a passing trend. Analyst Jesse Pichel from Piper Jaffray stated that the involvement of Intel, IBM, and HP in solar initiatives, following Bosch's acquisition of Ersol, confirms the long-term potential of solar energy. SunPower CEO Tom Werner also acknowledged the significance of having major players like Intel and IBM in the solar industry, which helps to solidify solar energy as a legitimate option for investors and other stakeholders. Werner stated that IBM and Intel's entry into the market would increase competition, but he believes SunPower's established business gives them a significant advantage. Werner mentioned in an interview that this competition will only push them to improve further. He emphasized that SunPower has been shipping products for years, so they need to stay ahead. Resch and Pichel added that new competitors, no matter how big, are unlikely to harm established companies in the solar panel market due to high demand. However, some believe that the large companies entering the solar industry may be arriving too late. Ashok Kumar, an analyst at CRT Capital Group, stated that these companies may be behind as many competitors have already established themselves both domestically and internationally.