Thin-film solar manufacturer First Solar has decided to reduce its module production output in Malaysia and Vietnam, which will cut a combined 1GW of production in 2025.
The company noted that it would produce fewer of its Series 6 modules from its Malaysian and Vietnamese bases, as it looks to emphasise its production in the US, which has seen policy uncertainty since the election of Donald Trump to the presidency for a second term.
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Since starting his second term, Trump has passed several executive orders and imposed tariffs – on countries, including China, and commodities, including aluminium and steel – that have affected the solar industry directly.
On top of US policy uncertainty, First Solar also stated other factors for cutting module production by a combined 1GW in Vietnam and Malaysia, namely that Chinese solar modules currently dominate the European solar market, the Indian market is “closed” to Southeast Asian products – the country introduced a 40% basic customs duty on solar modules and 25% duty on solar cells in April 2022 – and there is a supply and demand imbalance for products coming from Southeast Asia.
However, First Solar highlighted the relative stability of the average selling price (ASP) for modules in the US, its main market, as a positive for the country. This stability has been helped by domestic demand for modules as a result of the Inflation Reduction Act (IRA), in comparison with other markets where the ASP continues to decline.
“In light of such market realities, we continue to advocate for industrial and trade policies that provide a level playing field for domestic manufacturers of solar cells and modules,” wrote the company.
The cadmium telluride (CdTe) manufacturer still aims to add 4GW of annual nameplate capacity to its US operations. This includes the construction of its fifth US manufacturing facility, which will be located in Louisiana, where the company expects to begin operations in the second half of 2025.
The Series 6 modules represented nearly 10GW of First Solar’s 15.5GW of modules produced in 2024, with the 5.9GW of Series 7 modules produced. Overall, the company aims to reach an annual nameplate capacity of more than 25GW by 2026.
