First Solar, one of the top US solar panel makers, is cutting production at its facilities in Malaysia and Vietnam by a combined 1 gigawatt in 2025.

In its 2024 performance review ( Form 10-K ) submitted to the US Securities and Exchange Commission ( SEC ), First Solar lists four reasons for its decision to cut the production of its Series 6 modules, one of which is “the uncertain US policy environment following the 2024 US elections”.

President Donald Trump has initiated blanket tariffs on imported goods from China, Canada and Mexico, triggering a range of countermeasures from the affected countries.

The company, based in Tempe, Arizona, gives three other reasons: “a European Union market captured by Chinese solar modules, which pricing is at levels near or below manufacturing costs, an India market effectively closed to Southeast Asian finished goods, and a supply and demand imbalance for Southeast Asian products”.

No output cut ratios for Malaysia and Vietnam are given.

Also in the review submitted to SEC, First Solar notes that although module average selling prices in many global markets continue to decline, “recent module pricing in the United States, our primary market, has been relatively stable due, in part, to the demand for domestically manufactured modules as a result of the IRA ( The US Inflation Reduction Act of 2022 ). 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”.

Previous expansion plans

First Solar’s global manufacturing footprint spans facilities in the US, Malaysia, Vietnam, and India. In Malaysia, its production site is in Kulim, a town in the state of Kedah. Its two facilities in Vietnam are both in Ho Chi Minh City. The company’s investment in Vietnam has so far exceeded US$1 billion, according to local investment data.

Early in the second quarter of 2024, or seven months before the 2024 US elections, First Solar sought approval from Vietnamese authorities to increase production in Ho Chi Minh City.

In its application for an environmental safety permit submitted to the Ministry of Natural Resources and Environment at the time, First Solar said it wanted to increase the annual output of modules in the country from 7.3 million to 9.13 million units.

In addition, the US firm had plans to expand the annual production of crushed glass derived from modules from 2,764 to 15,000 tonnes, and chemicals derived from those modules from 81 to 146 tonnes. However, no official permission from the ministry has been seen since.

This February, the American Chamber of Commerce ( AmCham ) in Vietnam released the results of a snap survey conducted among its members in the same month. The study revealed significant concerns about the potential impact of the Trump administration’s tariffs on goods from Vietnam raised by US companies operating in the Southeast Asian nation.

Concerns ranged from operational disruptions and financial strain to potential job losses and broader economic repercussions. Up to 46% of the respondents indicated they might be forced to cut staff if tariffs are implemented, while 25% said they would not. Among manufacturers, nearly two-thirds foresee potential layoffs.