Sector: Information Technology | Focus: Semiconductors
HQ: Tempe, Arizona
Financial Risks
First Solar faces risks from global supply/demand imbalances, pricing pressure from competitors, especially those with potential state support, and potential warranty costs related to manufacturing issues affecting Series 7 modules. Changes in government subsidies, policies, and regulations, including tariffs and trade remedies, also pose risks. Supply chain disruptions, interest rate fluctuations, and customer financial health are additional concerns. Litigation risk, particularly the Southern Power Company arbitration and other pending cases, is a significant concern.
Financial Upside
First Solar anticipates increased demand for its modules due to the Inflation Reduction Act (IRA) tax credits, particularly for domestically manufactured modules. Expansion of manufacturing capacity, including a new facility, and potential price adjustments in existing contracts, offer potential revenue growth. Favorable government incentives in India and other regions, and the potential for new technologies like bifacial and multi-junction modules, also present upside opportunities.
