Tempe, AZ_based First Solar recently inaugurated a new solar module manufacturing facility in India’s southern state of Tamil Nadu. This is India’s first fully vertically integrated solar manufacturing plant and represents an investment of around $700 million. The facility has an annual production capacity of 3.3 gigawatts and employs around 1,000 people. It uses First Solar’s proprietary thin-film photovoltaic technology which is based on cadmium telluride semiconductors rather than conventional crystalline silicon.
The new factory was inaugurated by senior government officials from India and the U.S., including the Minister for Industries in Tamil Nadu, the U.S. Ambassador to India, and the CEO of the U.S. International Development Finance Corporation. The U.S. government provided $500 million in financing for the facility through the DFC.
“The United States is leveraging American innovation and technology to diversify critical energy supply chains around the world and drive economic growth in India,” said DFC CEO, Scott Nathan. “That’s good for the United States and it’s good for India. This $500 million in financing reflects the increasing strength of our partnership with India – DFC’s largest market and a like-minded partner with a dynamic private sector.”
The thin-film modules produced at the new factory have a much lower carbon and water footprint compared to conventional crystalline silicon panels. First Solar says its manufacturing process uses 50% less energy and a third of the water. The company sees the new facility as a crucial milestone in its global manufacturing expansion strategy, with 25GW of total capacity targeted by 2026.
Mark Widmar, CEO, First Solar, said, “The inauguration of this landmark manufacturing facility and the launch of commercial shipments to customers in India is a crucial milestone in our journey to long-term and sustainable growth. The speed with which we were able to build and commission this facility is a testament to the policies of India’s Federal and the Tamil Nadu state governments.”
The new First Solar factory in India establishes domestic solar manufacturing capability using advanced thin-film technology, and supports India’s renewable energy goals through a major U.S. investment. The public-private partnership highlights growing collaboration between the U.S. and India on climate action.
Last updated: December 26th, 2025
