Applied Materials gets $1.9B solar equipment order

March 5, 2008

Santa Clara, Calif.-based Applied Materials (Nasdaq: AMAT) grabbed a $1.9 billion order for equipment to be used in multiple solar panel factories, according to a regulatory filing.

The world's largest manufacturer of semiconductor production equipment moved into the market for equipment used in making solar panels with its 2006 acquisition of Applied Films.

Applied Materials did not disclose the buyer for the solar equipment, but reports are pointing to Moser Baer India, which announced a large solar order last month.

At the time, Moser Baer said its subsidiary PV Technologies India signed a memorandum of understanding worth more than $1.5 billion with an unidentified equipment supplier for thin-film photovoltaic equipment.

The company said the deal was expected to boost Moser Baer's capacity to over 600 megawatts by 2010, up from 40 MW.

In Applied Materials' filing with the U.S. Securities and Exchange Commission, it said it signed the agreement "with a privately-held corporation based outside the United States."

Under the contracts, Applied said it would "supply equipment and installation/warranty services for multiple solar factories to be constructed by buyer."

"The factories, which will feature Applied SunFab thin film tandem junction production equipment, collectively are expected to produce an annual output of solar photovoltaic modules capable of generating electricity on a gigawatt scale," said the filing.


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