What First Solar, Inc. told the SEC could break it.

Tellurium (core to CdTe modules) is largely produced by China, where exporters need a Ministry of Commerce license; China's expanded Oct 2025 rare-earth/critical-mineral export controls could disrupt First Solar's material supply.

“Although tellurium and products containing tellurium are sourced globally, China is a major global producer of tellurium and products containing tellurium. Exporters of tellurium and related products are generally required to obtain a license from the Chinese Ministry of Commerce. In October 2025, China expanded its rare earths export controls, adding new minerals to its restricted list and requiring foreign entities to obtain a license to export any products containing over 0.1% of rare earths from China or manufactured using China's extraction, refining, magnet-making, or recycling technology.”

2025 IEEPA tariffs hit First Solar's manufacturing countries (Vietnam 20%, India 25% then 50%, Malaysia 19%); after the Supreme Court struck IEEPA, new Section 122 tariffs (up to 15%) followed, plus Section 301 tariffs (50% cells/25% modules) on China — raising costs and impairing US import/sales of internationally made modules.

“As it pertains to the countries where we manufacture solar modules, IEEPA tariffs applied to Vietnam (20%), India (25%), and Malaysia (19%). In August 2025, the U.S. President had imposed an additional 25% tariff on India over its purchases of Russian oil, resulting in an overall rate of 50%. On February 20, 2026, the U.S. Supreme Court ruled the IEEPA tariffs unlawful. President Trump responded immediately by revoking the IEEPA tariff actions and imposing new global tariffs pursuant to Section 122 of the Trade Act of 1974”

Key inputs — CdTe, tellurium and tellurium-containing products, substrate glass — plus customized manufacturing equipment are single- or limited-sourced; supplier failure could disrupt module production and delivery.

“Several of our key raw materials and components, in particular CdTe, tellurium, products containing tellurium, and substrate glass, and manufacturing equipment are either single-sourced or sourced from a limited number of suppliers, and their failure to perform could cause manufacturing delays, especially as we expand or seek to expand our business, and/or impair our ability to deliver solar modules to customers in the required quality and quantities and at a price that is profitable to us.”

Two customers — Silicon Ranch and NextEra Energy — each were ≥10% of 2025 module net sales; loss or contract termination by a large customer has reduced and could materially reduce net sales (50.1 GW / $15.0B backlog).

“During 2025, Silicon Ranch Corporation and NextEra Energy each accounted for 10% or more of our modules business net sales.”

First Solar's global manufacturing spans the US, India, Malaysia and Vietnam; tariffs on the international fleet have raised costs and impaired its ability to sell those modules into the US, affecting the operational status of certain overseas plants.

“Our global manufacturing footprint spans the United States, India, Malaysia, and Vietnam.”