Major corporations such as Intel Corp and International Business Machines Corp have recently entered the solar power business, signaling a potential trend as big companies aim to profit from the increasing demand for clean energy sources. According to Rhone Resch, president of the Solar Energy Industries Association, these developments reflect the direction in which the solar industry is heading, with both technology and energy companies making moves into solar power. 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 multibillion-dollar businesses in recent years. Now, other companies are looking to enter the growing solar market, with some tech companies like Applied Materials Inc and Cypress Semiconductor Corp recognizing the potential for growth in the industry. Kevin Genieser from Morgan Stanley's renewable energy investment banking practice believes that strategic players in the industry have the ability to bring large-scale manufacturing to the table. He expects to see increased merger and acquisition activity in the solar sector. Recently, Intel announced the spin-off of its solar technology into SpectraWatt Inc, while IBM partnered with Tokyo Ohka Kogyo Co Ltd to develop more efficient solar power technologies. SpectraWatt will begin shipping its solar cells next year with a $50 million investment from Intel. IBM and TOK plan to license their thin film solar technology in the next few years. Additionally, Robert Bosch GmbH recently announced the acquisition of German solar cell maker Ersol for 1.08 billion euros ($1.67 billion). Privately owned Bosch, the world's largest automotive supplier, recently announced its acquisition of Ersol. Additionally, Hewlett-Packard Co, the world's largest computer maker, revealed plans to license its clear transistor technology to a solar power company called Xtreme Energetics. These moves by corporate giants like Intel, IBM, and HP are seen as a validation of solar power's long-term potential, dispelling any notion that it is just a passing trend. SunPower's CEO, Tom Werner, also acknowledged that with major players like Intel and IBM entering the solar industry, solar power is being taken seriously by investors and other stakeholders. Werner stated that IBM and Intel will increase competition, but SunPower's established business gives them a significant edge. Werner mentioned in an interview that this will push SunPower to improve. Resch and Pichel also agreed that new competitors are unlikely to harm established players due to high demand for solar panels. Some people 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 tardy and not well-prepared, as many other companies have already established themselves in the market.