Semiconductor production equipment provider Tokyo Electron (TEL) yesterday announced it has teamed up with electronics giant Sharp to develop a new means of manufacturing thin-film silicon photovoltaic cells.

The two Japanese firms have formed a joint venture which will see TEL take a 51 per cent stake and Sharp hold the remaining 49 per cent.

TEL said the new firm, called Tokyo Electron PV and capitalised with $462,000, would work on commercialising new plasma chemical vapour deposition systems for the production of thin-film photovoltaic cells, which it claims can increase the productivity of thin-film manufacturing processes.

It added that the new equipment will be manufactured and sold by TEL, with the first shipments planned for next year.

Thin film technologies have become an area of intense interest for solar cell firms, as they promise to slash the amount of costly silicon required in cells and can be manufactured using more cost effective production processes.

Last year, Sharp underlined its commitment to the new technology, announcing it was to increase production from its main thin-film plant 10-fold by October this year and unveiling plans for a new manufacturing facility capable of producing 1,000MW of thin-film solar cell capacity a year when it opens in 2010.