First Solar announced a $330 million investment to build a new manufacturing plant in Gaffney, Cherokee County, South Carolina. The facility will bring the final production steps for Series 6 Plus thin‑film modules to the United States, adding 3.7 GW of nameplate capacity and creating more than 600 full‑time positions with an average annual salary of $74,000.
The expansion is a strategic response to the Inflation Reduction Act’s domestic‑content bonus credit and the Treasury’s Foreign Entities of Concern guidance. By shifting finishing operations to the U.S., First Solar can avoid the 50 % tariff that applies to modules manufactured abroad and qualify for the additional 10 % tax credit that rewards U.S.‑made components, strengthening its competitive position against Chinese‑tied competitors.
First Solar’s Q3 2025 earnings, released the same day, showed revenue of $1.60 billion—$0.04 billion above the $1.56 billion consensus estimate—reflecting robust demand for its thin‑film technology. Earnings per share were $4.24, $0.08 below the $4.32 consensus, a miss driven by a drop in gross margin from 46 % to 38 %. Management attributed the margin compression to a lower mix of U.S.‑made modules that benefit from Section 45X tax credits, higher under‑utilization costs from production curtailments in Southeast Asia, the termination of a BP affiliate contract, and a glass supply‑chain disruption at its Alabama plant.
In light of the earnings results, First Solar revised its full‑year 2025 guidance downward: revenue is now projected at $4.95 billion to $5.20 billion (previously $4.90 billion to $5.70 billion) and diluted EPS at $14.00 to $15.00 (previously $13.50 to $16.50). The narrowed outlook signals management’s caution about near‑term cost pressures while maintaining confidence in long‑term demand for U.S.‑produced modules.
Investors reacted favorably to the combined impact of a revenue beat, the announcement of a large domestic facility, and a guidance update that, while modestly lower, still reflects a positive growth trajectory. The market’s response underscores confidence in First Solar’s ability to leverage domestic manufacturing incentives and navigate evolving trade policies.
The new plant positions First Solar to meet the growing U.S. demand for solar modules that qualify for domestic‑content incentives, enhances supply‑chain resilience, and strengthens its competitive advantage in a market increasingly focused on U.S. production. The expansion also signals the company’s commitment to scaling its thin‑film technology, which has historically delivered higher efficiencies and lower costs compared to silicon‑based competitors.
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