First Solar to slash production in Vietnam, Malaysia

First Solar to slash production in Vietnam, Malaysia

First Solar, a leading American solar technology company, will reduce its production in Vietnam and Malaysia, according to its 2024 performance review.

Accordingly, First Solar has decided to reduce production output of its Series 6 modules at the manufacturing facilities in Malaysia and Vietnam by a combined total of 1GW in 2025.

There are four reasons for the company to make this decision. First, the European Union market has been captured by Chinese solar modules, with pricing is at levels near or below manufacturing cost.

Second, the India market is effectively closed to Southeast Asian finished goods. Third, the uncertain US policy environment following the 2024 US election. Another final reason is the supply and demand imbalance for Southeast Asian products.

Although module average selling prices in many global markets continue to decline, recent module pricing in the United States, First Solar's primary market, has been relatively stable due, in part, to the demand for domestically manufactured modules.

In addition, the US currently imposes antidumping and countervailing duties on certain imported crystalline silicon PV cells and modules from China and Taiwan.

In November 2024, the USDOC announced preliminary affirmative determinations in the antidumping investigations, providing for certain preliminary dumping rates applicable to solar cells from Cambodia, Malaysia, Thailand, and Vietnam ranging from de minimis to approximately 270 per cent, depending on the particular foreign producer. The USDOC is expected to announce final determinations in June 2025.

First Solar is one of the largest American investors in Vietnam, with a 44-hectare factory in Dong Nam Industrial Park, Binh My commune, Cu Chi district, Ho Chi Minh City. With a total investment capital of $930 million, the factory has a capacity of 9.13 million solar photovoltaic modules per year.

With a global footprint that spans the US, India, Malaysia, and Vietnam, First Solar expects to have an annual manufacturing capacity of over 25GW by 2026.

VIR