Chinese solar panel firms
shutter Malaysian plants
in view of US tariffs
The companies, including the world’s largest solar panel producer Jinko Solar Co, are said to be bracing for tariff hikes by the Trump administration.
Singapore’s The Straits Times quoted industry sources as saying tariffs imposed by the US in 2024 had already affected the profit margins of these companies, while further hikes were expected with Trump taking office.
The affected companies reportedly include Jinko Solar Co – the largest solar panel producer globally – Risen Energy Co, and JA Solar Technology Co. The three companies contribute to 40% of Malaysia’s total capacity for solar production.
Risen Energy is said to have reduced its operations over the past six months, after initially planning to invest more than RM42 billion over 15 years in its factory in Kulim, Kedah. The company began production in Malaysia in 2021.
Another Chinese firm, Longi Green Energy Technology Co, has scrapped plans to expand its operations in Malaysia after establishing three solar panel factories in Selangor and Sarawak, the report said.
It is said to have invested RM5.4 billion as of 2023 since it first entered the Malaysian market in 2016.
Malaysian Photovoltaic Industry Association adviser Chin Soo Mau said more Chinese companies were expected to cease operations in Malaysia, as many had set up shop here purely to target the US market.
“With higher scrutiny over the ownership of companies exporting solar panels to the US, and potential higher tariffs by Trump, their products will no longer be competitive in the US market,” he was quoted as saying.
Consultancy firm Wood Mackenzie reported that nearly 80% of Malaysia’s solar production capacity in 2024 were contributed by Chinese firms, with the remaining from US’s First Solar, and Korea’s Hanwha Qcells.
These solar panels are mostly exported to the US.
A source at a local bank told The Straits Times the move by major Chinese firms to scale down or cease operations had a ripple effect on smaller companies in the supply chain that were also from China.
“They are unable to supply their products to the major solar panel manufacturers that have shut operations,” said the banker, whose clients included some of these smaller China companies.
With more Chinese solar panel manufacturers anticipated to leave the Malaysian market this year, Wood Mackenzie’s head of solar supply chain research, Yana Hryshko, said more than 5,000 workers stand to lose their jobs while revenue from the sector would dwindle.
However, a government source said Putrajaya’s agencies were trying to get some of these companies to help in Malaysia’s transition to renewable energy.
“The manufacturing facilities are already built, so we are exploring whether they can be used to supply solar panels to local power producers,” said the senior government official, who did not want to be named.
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