First Solar Stock

First Solar, Inc. and its consolidated subsidiaries (First Solar) operate as an American solar technology company and global provider of photovoltaic (PV) solar energy solutions.

Developed at the company's research and development ('R&D') labs in California and Ohio, the company manufactures and sells PV solar modules with an advanced thin film semiconductor technology that provide a high-performance, lower-carbon alternative to conventional crystalline silicon PV solar modules. From raw material sourcing through end-of-life module recycling, the company is committed to reducing the environmental impacts and enhancing the social and economic benefits of the company's products across their life cycle. The company is the world's largest thin film PV solar module manufacturer and the largest PV solar module manufacturer in the Western Hemisphere.

Business Strategy

Advanced Module Technology

The company's module semiconductor structure is a single-junction polycrystalline thin film that uses Cadmium Telluride ('CdTe') as the absorption layer. CdTe has absorption properties that are well matched to the solar spectrum and can deliver competitive wattage using approximately 2% to 3% of the amount of semiconductor material used to manufacture conventional crystalline silicon modules. In terms of performance, in many climates the company's solar modules provide certain energy production advantages relative to competing crystalline silicon modules. For example, the company's CdTe solar technology provides: a superior temperature coefficient, which results in stronger system performance in typical high insolation climates as the majority of a system's generation, on average, occurs when module temperatures are well above 25°C (standard test conditions); a superior spectral response in humid environments where atmospheric moisture alters the solar spectrum relative to standard test conditions; a better partial shading response than competing crystalline silicon technologies, which may experience significantly lower energy generation than CdTe solar technologies when partial shading occurs; and an immunity to cell cracking and its resulting power output loss, a common failure often observed in crystalline silicon modules caused by poor manufacturing, handling, weather, or other conditions.

Manufacturing Process and Distributed Manufacturing Presence

The company's modules combine its leading-edge CdTe technology with the manufacturing excellence and quality control that comes from being the world's most experienced producer of thin film PV solar modules. With more than 60 GW of modules sold worldwide, the company has a demonstrated history of manufacturing success and innovation. The company's global manufacturing footprint includes facilities in the United States, Malaysia, Vietnam, and India. During 2023, the company commenced production of its Series 7 modules at the company's third manufacturing facility in Ohio and the company's first manufacturing facility in India, which combine the company's thin film CdTe technology with a larger form factor and an innovative steel back rail mounting structure that reduces module installation time. Additionally, the company is in the process of expanding its manufacturing capacity by approximately 8 GW, including the construction of the company's fourth U.S. manufacturing facility in Alabama, which is expected to commence operations in the second half of 2024; the company's fifth U.S. manufacturing facility in Louisiana, which is expected to commence operations in late 2025; and the expansion of the company's manufacturing footprint at the company's existing facilities in Ohio, which is expected to be completed in the first half of 2024.

The company's modules are manufactured in a high-throughput, automated environment that integrates all manufacturing steps into a continuous flow process. This process eliminates the multiple supply chain operators and resource-intensive batch processing steps that are used to produce crystalline silicon modules, which typically occur over several days and across multiple factories. At the outset of the company's module production, a sheet of glass enters the production line and in a matter of hours is transformed into a completed module ready for shipment.

This proprietary production process includes the following three stages: (i) the deposition stage, (ii) the cell definition and treatment stage, and (iii) the assembly and test stage. In the deposition stage, panels of transparent oxide-coated glass are robotically loaded onto the production line where they are cleaned, laser-mark identified with a serial number, heated, and coated with thin layers of CdTe and other semiconductor materials using the company's vapor transport deposition technology, after which the semiconductor-coated plates are cooled rapidly to increase glass strength. In the cell definition and treatment stage, the company use high-speed lasers to transform the large continuous semiconductor coating on the glass plate into a series of interconnected cells that deliver the desired current and voltage output. In this stage, the company also treat the semiconductor film using certain chemistries and processes to improve the device's performance and apply a back contact. In the assembly and test stage, the company applies busbars, inter-layer material, and a rear glass cover sheet that is laminated to encapsulate the device. The company then applies anti-reflective coating material to the substrate glass to further improve the module's performance by increasing its ability to absorb sunlight. Finally, junction boxes, termination wires, and a frame are applied to complete the module assembly.

The company maintains a robust quality and reliability assurance program that monitors critical process parameters and measures product performance to ensure that industry and more stringent internal standards are met. The company also conducts acceptance testing for electrical leakage, visual quality, and power measurement on a solar simulator prior to preparing a module for shipment. The company's quality and reliability tests complement production surveillance with an ongoing monitoring program, subjecting production modules to accelerated life stress testing to help ensure ongoing conformance to requirements of the International Electrotechnical Commission and Underwriters Laboratories Inc. These programs and tests help assure delivery of power and performance in the field with a high level of product quality and reliability.

Research and Development

The company continues to devote substantial resources to its R&D efforts, which generally focus on continually improving the wattage and energy yield of the company's solar modules. The company also has R&D programs to improve module durability and manufacturing efficiencies, including throughput, volume ramp, and material cost reduction. The company continues to invest significant financial resources in such initiatives, including the construction of a dedicated perovskite development line and the construction of a dedicated R&D facility in the United States to support the implementation of the company's technology roadmap. The company expects this R&D facility to be completed in 2024 and to feature a high-tech pilot manufacturing line, enabling production of full-sized prototypes of thin film and tandem PV modules. Based on publicly available information, the company is one of the leaders in R&D investment among PV solar module manufacturers.

The company primarily conducts its R&D activities and qualify process and product improvements for full production at the company's Perrysburg, Ohio plant and systematically deploy them to the company's other facilities. The company's systematic approach to technology change management enables continuous improvements and ensures uniform adoption across the company's production lines. In addition, the company's production lines are replicas or near replicas of each other and, as a result, a process or production improvement on one line can be rapidly and reliably replicated across other production lines.

The company regularly produces research cells in its laboratories, some of which are tested for performance and certified by independent labs, such as the National Renewable Energy Laboratory. Cell efficiency measures the proportion of light converted to electricity in a single solar cell under standard test conditions. The company's research cells are produced using laboratory equipment and methods and are not intended to be representative of the company's manufacturing capability. The company continues to evaluate opportunities to develop and leverage other solar cell technologies in multi-junction applications consisting of CdTe, silicon, or other materials. For example, during 2023 the company acquired Evolar AB ('Evolar'), a European developer of perovskite technology. This acquisition is expected to accelerate the development of high efficiency multi-junction devices by integrating Evolar's know-how with First Solar's existing R&D capabilities, intellectual property portfolio, and expertise in developing and commercially scaling thin film PV products. Such multi-junction applications have the potential to significantly increase the efficiency of PV modules beyond the limits of traditional single-junction devices.

Modules Business

The company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. The company's Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. The company's Series 7 module, which the company began producing in early 2023 at the company's newest manufacturing facility in the U.S. and began producing in India in the second half of 2023, has a larger form factor of approximately 4ft x 7ft in size. As of December 31, 2023, the company's Series 6 Plus and Series 7 modules had an average power output of 467 watts and 533 watts, respectively.

Customers

The company's customers include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. During 2023, the company's third-party module sales represented approximately 99% of the company's total net sales, and the company sold the majority of the company's solar modules to customers in the United States. During 2023, Lightsource BP was the only customer that accounted for more than 10% of the company's modules business net sales.

Intellectual Property

The company has registered and/or has applied to register trademarks and service marks in the United States and a number of foreign countries for 'First Solar.'

Regulatory, Environmental, Health, and Safety Matters

The company is subject to the application of various anti-bribery laws, some of which prohibit improper payments to government and non-government persons and entities, and others (e.g., the U.S. Foreign Corrupt Practices Act (the 'FCPA') and the U.K. Bribery Act) that extend their application to activities outside their country of origin.

History

First Solar, Inc. was founded in 1999. The company was incorporated as a Delaware corporation in 2003.