First Solar Scales U.S. Manufacturing to Meet Rising Demand

Core Insights - First Solar Inc. (FSLR) is the largest solar photovoltaic (PV) manufacturer in the Western Hemisphere and is significantly increasing its U.S. production capacity to meet rising solar demand, targeting an installed nameplate capacity of approximately 14 gigawatts (GW) by the end of 2026 [1][8] Company Developments - FSLR has commenced commercial operations at its fourth manufacturing facility in the U.S. in Q2 2025 and is progressing on its fifth facility, expected to start operations in the second half of 2025 [2] - The company plans to invest approximately $0.6 billion in U.S. facilities and upgrades throughout 2025 and 2026 [2][8] Industry Trends - Other solar companies, such as Canadian Solar Inc. (CSIQ) and SolarEdge Technologies (SEDG), are also expanding their manufacturing capacities in response to increasing demand and government incentives [4] - Canadian Solar's facility in Mesquite, TX, is expected to contribute around 3 GW of volume delivery this year, enhancing the share of domestically produced products in its U.S. shipments [5] - SolarEdge Technologies is increasing its manufacturing of inverters in Florida and batteries in Utah to leverage federal incentives from the Inflation Reduction Act [6] Market Performance - FSLR shares have declined by 45.1% over the past year, compared to a 49% decline in the industry [7] - The company's shares are trading at a forward 12-month Price/Earnings ratio of 7.99X, significantly lower than the industry's average of 14.40X [9]