Global Solar Manufacturers Reset Strategies Amid U.S. Trade Shifts
After a summer of upheaval that saw the early retirement of key renewable energy tax credits and a combative new trade stance from the U.S., the stage is set for significant changes in supply chains and market positioning. Solar module and cell manufacturers arrived at this year’s RE+ conference with new strategies for navigating a turbulent policy and trade landscape, as they attempt to plot a new path forward.
Chinese Manufacturers Seek U.S. Partners
Multiple Chinese producers told OPIS they are in talks with American firms to either form partnerships or divest U.S. assets ahead of the year-end implementation of foreign entities of concern (FEOC) rules. These regulations will restrict ownership and material assistance links to Chinese companies, raising the stakes for firms looking to maintain access to Inflation Reduction Act incentives.
Southeast Asia to Africa: A Manufacturing Shift
Asian companies that relocated manufacturing to Indonesia and Laos during the 2024 anti-dumping/countervailing duties (AD/CVD) probe into Vietnam, Malaysia, Thailand, and Cambodia are now pulling back. One manufacturer shuttered its Thai facility and moved operations to the Philippines, while another is closing in Indonesia to focus there as well.
The new AD/CVD investigation launched in August 2025 into Laos, Indonesia, and India is accelerating this shift. Some overseas players are now looking beyond Asia, establishing solar manufacturing capacity in Africa—with projects underway in Djibouti, Nigeria, Ethiopia, and Egypt.
U.S. Manufacturers Weigh Sourcing Options
One U.S.-based producer with a domestic assembly plant told OPIS that, until meaningful solar cell capacity is built stateside, the company may source cells from Ethiopia and Turkey. The manufacturer acknowledged that the early phase-out of the Section 48E Investment Tax Credit (ITC) and its 10% domestic content bonus has raised doubts about the competitiveness of an all-domestic supply chain.
Steep tariffs and ongoing trade investigations, however, are making imports increasingly risky—a dynamic the company believes ultimately strengthens its U.S.-based strategy.
India’s Complicated Position
Indian manufacturers made a strong showing at RE+, reflecting their ambitions to expand into the U.S. market. Yet the new AD/CVD investigation has created headwinds, with multiple Indian sources telling OPIS that customer interest has slowed as buyers await preliminary determinations.
Still, some believe India may fare better than peers in Laos and Indonesia due to their closer supply-chain links to China.
Concerns persist, however, over India’s dependence on Chinese polysilicon, which could fall afoul of FEOC rules. At the same time, sources said potential U.S. buyers are more concerned about the pending Section 232 probe into national security risks tied to polysilicon imports than the AD/CVD case itself.
Adding to the uncertainty, India’s solar exports to the U.S. face a 50% “reciprocal” tariff imposed in August, along with an additional 10% levy tied to its participation in the BRICS coalition. One manufacturer expressed confidence that these barriers will be resolved through a trade deal before year-end.
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