Intel shuts down solar spin-off

BANGALORE, INDIA: Chip giant Intel announced that it is shutting down its solar technology spin off and will close a manufacturing plant at its upstate New York headquarters.

According to a report by The Wall Street Journal, SpectraWatt, the solar cell startup is shutting down its factory in Hopewell Junction, New York, which was opened less than a year back. The closure will result in the laying off of more than 100 employees.

In a media statement released on Wednesday, SpectraWatt blamed the shutdown on a steep decline in demand for solar cells due to a harsher-than-usual European winter. The news release said the company hopes to reverse the situation that led to the decision. However, the company spokesman refused to elaborate.

SpectraWatt, which was formed from assets spun out of Intel Corporation in June 2008, and complemented by a $50 million Series-A investment from multiple investors, opened its its first solar cell factory in Hopewell Junction, New York, on May 7, 2010.

Analysts feel that the move to close down the plant is a blow for Intel, SpectraWatt and the state of New York and also a setback for the U.S. solar industry.