First Solar commenced production at its Alabama facility in 2024, bringing total installed capacity to 21 GW. The company is also expanding capacity by approximately 4 GW, including a new U.S. facility expected to commence operations in the second half of 2025.

The company is investing in a dedicated perovskite development line and R&D innovation center in Ohio, formally commissioned in 2024. This supports the implementation of the technology roadmap, including thin film and tandem PV modules.

First Solar decided to reduce production output of its Series 6 modules at its manufacturing facilities in Malaysia and Vietnam by a combined total of 1 GW in 2025, due to a European Union market captured by Chinese solar modules, an India market effectively closed to Southeast Asian finished goods, the uncertain U.S. policy environment following the 2024 U.S. elections, and a supply and demand imbalance for Southeast Asian product.

First Solar commenced a limited commercial production run of modules employing its copper replacement ("CuRe") technology in late 2024 and intends to begin a phased replication of the technology across its fleet in the first quarter of 2026.

First Solar identified manufacturing issues affecting certain Series 7 modules manufactured in 2023 and 2024 that may cause the modules to experience premature power loss once installed in the field. The company believes the primary causes of the issues have been identified and actions have been taken to address such issues.

The solar energy sector is highly competitive, and the industry may experience periods of structural imbalance between global PV module supply and demand, resulting in periods of pricing volatility. Competitors may reduce module pricing to levels near or below their manufacturing costs.

The modification, reduction, elimination, or expiration of government subsidies, economic incentives, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications could negatively impact demand and/or price levels for First Solar's solar modules.

Several key raw materials and components, including CdTe and substrate glass, are either single-sourced or sourced from a limited number of suppliers, and their failure to perform could cause manufacturing delays and impair First Solar's ability to deliver solar modules.

The solar industry may experience periods of structural imbalance between global PV module supply and demand that result in periods of pricing volatility. If our competitors reduce module pricing to levels near or below their manufacturing costs, or are able to operate at minimal or negative operating margins for sustained periods of time, or if global demand for PV modules decreases relative to installed production capacity, our business, financial condition, and results of operations could be adversely affected.

Allegations of forced labor in the Chinese solar supply chain have emerged in recent years, which means we also compete on our approach to responsible sourcing and supply chain due diligence. Our differentiated technology, integrated manufacturing process, and tightly controlled supply chain help limit the risks associated with outsourcing and the multiple supply tiers of conventional crystalline silicon module manufacturing.

Our failure to effectively manage module manufacturing production and selling costs, including costs related to raw materials and logistics services, could render our solar modules uncompetitive and reduce our net sales, profitability, and/or market share.

Our future success depends on our ability to effectively balance manufacturing production with market demand, effectively manage our cost per watt, and, when necessary, continue to build new manufacturing plants over time in response to market demand, all of which are subject to risks and uncertainties.

Our failure to further refine our technology and develop and introduce improved PV products, including as a result of delays in implementing planned advancements, could render our solar modules uncompetitive and reduce our net sales, profitability, and/or market share.

We may expand our portfolio of offerings to include solutions that build upon our core competencies but for which we have not had significant historical experience, including variations in our traditional product offerings or other offerings related to certain markets. There can be no guarantee that our significant R&D expenditures will produce corresponding benefits.

We may be unable to generate sufficient cash flows or have access to the sources of external financing necessary to fund planned capital investments in manufacturing capacity and product development.

Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social, and governance matters, that could expose us to numerous risks.

A failure to adequately meet regulatory requirements and stakeholder expectations or achieve our ESG-related goals may result in the loss of business, diluted market valuation, an inability to attract customers, or an inability to attract and retain top talent.

The market for electricity generation products is heavily influenced by federal, state, local, and foreign government regulations and policies concerning the electric utility industry, as well as policies promulgated by electric utilities. These regulations and policies often relate to electricity pricing and interconnection of customer-owned electricity generation.

Application of trade laws may also impact, either directly or indirectly, our operating results. In some instances, the application of trade laws is currently beneficial to the Company, and changes in their application could have an adverse impact.