First Solar is actively commercializing CdTe-based thin-film photovoltaics. During the past year, major additions of production capability have been completed, as well as process improvements to achieve higher throughput and efficiency and greater durability. This report presents the results of Phase II of the subcontract, entitled ''Research Leading to High Throughput Manufacturing of Thin-Film CdTe PV Modules.'' The subcontract supports several important aspects needed for high-volume manufacturing of high-efficiency modules, including exploration of large-area advanced front-contact window layers, improvements of the semiconductor deposition system, advancement in understanding of post-deposition processing steps and accelerated life testing methods, and progress in the environmental, health and safety programs. Work under this subcontract contributes to the overall manufacturing operation. During Phase II, average module efficiency (total area) on the production line was improved from 7.9% to 8.6% due primarily to process optimization. At the same, time production volume for commercial sales increased from 2.5 MW in 2003 to an estimated 6 MW in 2004. Much of the new 25 MW/yr production line has been qualified, and production volume is steadily increasing.