Thomas Friedman: National Energy Summit Attendee and Sponsor Applied Materials “One of the Most Important Companies You’ve Never Heard Of”

In a Sept. 16 column, New York Times writer Thomas Friedman covered microchip and solar manufacturer Applied Materials. Board of Directors member and Council on Competitiveness distinguished fellow Andy Karsner is attending the National Energy Summit, of which Applied Materials is a National Sponsor. Wrote Friedman:

The reason that all these other countries are building solar-panel industries today is because most of their governments have put in place the three prerequisites for growing a renewable energy industry: 1) any business or homeowner can generate solar energy; 2) if they decide to do so, the power utility has to connect them to the grid; and 3) the utility has to buy the power for a predictable period at a price that is a no-brainer good deal for the family or business putting the solar panels on their rooftop.

Regulatory, price and connectivity certainty, that is what Germany put in place, and that explains why Germany now generates almost half the solar power in the world today and, as a byproduct, is making itself the world-center for solar research, engineering, manufacturing and installation. With more than 50,000 new jobs, the renewable energy industry in Germany is now second only to its auto industry. One thing that has never existed in America — with our fragmented, stop-start solar subsidies — is certainty of price, connectivity and regulation on a national basis.

That is why, although consumer demand for solar power has incrementally increased here, it has not been enough for anyone to have Applied Materials — the world’s biggest solar equipment manufacturer — build them a new factory in America yet. So, right now, our federal and state subsidies for installing solar systems are largely paying for the cost of importing solar panels made in China, by Chinese workers, using hi-tech manufacturing equipment invented in America.

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If you read some of the anti-green commentary today, you’ll often see sneering references to "green jobs." The phrase is usually in quotation marks as if it is some kind of liberal fantasy or closet welfare program (and as if coal, oil and nuclear don’t get all kinds of subsidies). Nonsense. In 2008, more silicon was consumed globally making solar panels than microchips, said [Applied Materials CEO Mike] Splinter.

"We are seeing the industrialization of the solar business," he added. "In the last 12 months, it has brought us $1.3 billion in revenues. It is hard to build a billion-dollar business."

Applied sells its solar-panel factories for $200 million each. Solar panels can be made from many different semiconductors, including thin film coated onto glass with nanotechnology and from crystalline silicon. At Applied, making these complex machines requires America’s best, high-paid talent — people who can work at the intersection of chemistry, physics and nanotechnology.