US First Solar to reduce production in Vietnam, Malaysia

First Solar, an American manufacturer of solar panels, will reduce production in Vietnam and Malaysia, the firm said in its 2024 performance review.

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

It clarified four issues leading to the decision. First, the EU market is captured by Chinese solar modules, with prices at levels near or below First Solar’s manufacturing cost.

Second, the Indian market is “effectively closed to” Southeast Asian finished goods. Third, the "uncertain U.S. policy environment" following Donald Trump becoming U.S. President for the second time leads to changes. Another issue is a supply and demand imbalance for Southeast Asian products.

With the production scaling down in Southeast Asia, First Solar noted that it is expanding its global capacity by four GW, thanks to its fifth U.S. manufacturing facility coming to operations in the second half of 2025.

First Solar’s output reached 15.5 GW in 2024 and is set to increase to 18-19 GW in 2025 and over 25 GW by 2026.

Established in 1999, First Solar started investment and production in Vietnam in 2017. Its $1.07 billion investment at Dong Nam Industrial Park in Ho Chi Minh City started operations in 2018, with an annual capacity of 5.31 million tons of solar photovoltaic modules. After five years, the firm expanded its operation to 7.3 million tons of solar photovoltaic modules.

In 2024, the firm increased its annual capacity of solar photovoltaic modules at the Vietnam factory to 9.13 million items.