First Solar will invest $330 million in a 3.7 GW module factory in Gaffney, South Carolina
The new fab supports onshoring by shifting capacity from Vietnam and Malaysia to meet OBBBA-driven US demand for domestically manufactured panels
Production cuts in Southeast Asia by First Solar align with FEOC compliance while the company evaluates further US expansion options
First Solar, a cadmium telluride (CdTe) solar PV technology company in the US, has picked South Carolina’s Gaffney city in Cherokee County for its newly announced manufacturing factory with an annual production capacity of 3.7 GW.
First Solar already operates a distribution center in Duncan, Spartanburg County, in South Carolina. The factory will create over 600 jobs, it said.
The management announced the project recently, while sharing its Q3 2025 financial results, but had not revealed the location (see High Module Sales Improve First Solar’s Q3 2025 Revenues).
To be built for approximately $330 million investment, the South Carolina factory will process thin film solar cells into fully completed Series 6 Plus modules. This fab is part of the manufacturer’s efforts to onshore its international capacity from Vietnam and Malaysia facilities. This, it says, will help it meet the demand for American-made solar technology created by the signing of the One Big Beautiful Bill Act (OBBBA).
“The passage of the One Big Beautiful Bill Act and the Administration’s trade policies boosted demand for American energy technology, requiring a timely, agile response that allows us to meet the moment,” said First Solar CEO Mark Widmar. “We expect that this new facility will enable us to serve the US market with technology that is compliant with the Act’s stringent provisions, within timelines that align with our customers’ objectives.”
Earlier this year, in March 2025, First Solar had announced plans to bring down its Series 6 module production by 1 GW in 2025 in order to comply with the US’ Foreign Entities of Concern (FEOC) directives and to cater to growing demand for domestically produced panels (see First Solar To Cut Series 6 Production From SE Asia Factories).
During Q3 2025, the company reduced its production in Malaysia and Vietnam. As it awaits a decision on the Section 232 polysilicon investigation and clarity on the FEOC guidelines, it continues to evaluate options for the remaining capacity at these locations. Widmar had told the analysts, “We’ll continue to evaluate whether there’s an opportunity to bring more into the U.S. using the front-end capacity we have internationally.”
The 3.7 GW South Carolina fab, when it is online in H2 2026, will expand First Solar’s annual nameplate production capacity compliant with FEOC to 17.7 GW in 2027, in the US.
First Solar had earlier shared plans to expand its nameplate production capacity globally to over 25 GW by 2026, up from 21 GW at the end of 2024, including 14 GW in the US (see First Solar Achieves FY2024 Guidance With 27% YoY Increase).