Image: First Solar
US solar module manufacturer First Solar has announced plans to construct a new production facility in South Carolina, bringing the company’s total U.S. nameplate manufacturing capacity to 17.7GW by 2027.
The cadmium telluride (CdTe) thin-film specialist revealed the 3.7GW facility last month. The new plant, located in Gaffney, Cherokee County, will handle the final production processes for First Solar’s Series 6 Plus modules. The site selection builds on the company’s existing footprint in the state, which includes a distribution center in Duncan, Spartanburg County, and what First Solar described as a “longstanding partnership” with Inland Port Greer.
First Solar plans to invest approximately US$330 million in the new facility, its sixth U.S. factory. The plant will complete module assembly using components manufactured at the company’s international production sites.
The manufacturer currently operates three factories in Ohio, one in Alabama, and one in Louisiana, alongside research and development centers in Ohio and California. Its most recent US facility, located in Louisiana, entered production earlier this year.
Expansion Driven by U.S. Trade Policy and the OBBB Act
First Solar said its US expansion is directly tied to trade policy developments and the passage of the “One, Big, Beautiful Bill” (OBBB), which strengthens domestic content requirements for renewable energy technologies.
“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,”— Mark Widmar, CEO, First Solar
Widmar added that the new facility will help ensure First Solar can deliver technology compliant with the Act’s stringent sourcing rules within the timelines required by customers.
The company expects its US production to be fully compliant with upcoming Foreign Entity of Concern (FEOC) restrictions under the OBBB, which aim to curb the influence of China-based or Chinese-backed firms in the U.S. renewables sector. Widmar previously noted that the OBBB “strengthens” First Solar’s competitive position in the domestic market, largely because its CdTe thin-film technology avoids the traditional silicon supply chain dominated by Chinese manufacturers.
First Solar’s strategy also benefits from the U.S. Geological Survey’s recent inclusion of tellurium on the nation’s Critical Minerals list. Tellurium is a key material in CdTe solar technology.
Mike Carr, executive director of the Solar Energy Manufacturers for America (SEMA) coalition, said the designation will bolster domestic supply chains: “The U.S. leads the world in CdTe innovation and manufacturing, and this continued recognition will help strengthen domestic supply chains for tellurium refining and recovery, supporting growth of American solar manufacturing and innovation.”
As U.S. protectionist measures intensify—particularly under the Trump administration—First Solar is expected to gain further competitive advantage over silicon-based manufacturers facing greater regulatory pressure.
