China's Top 4 PV Makers Exit U.S. Factories Amid Regulatory Shift

JinkoSolar Sells Majority Stake in U.S. Factory

JinkoSolar announced on May 8 that its U.S. holding subsidiary plans to sell 75.1% stake in its 2GW U.S. component factory to FH JKV Holdings Limited for $191.5 million (approximately 1.3 billion yuan), according to the company announcement. Following the transaction, FH will hold 75.1% and JinkoSolar will retain 24.9% of the factory, which will no longer be consolidated into JinkoSolar’s financial statements. The remaining 24.9% stake positions JinkoSolar just below the 25% threshold set by the U.S. “Big and Beautiful Act.”

The U.S. factory demonstrated strong profitability, generating net profit of 1.34 billion yuan in 2025 and 366.575 million yuan in the first quarter of 2026, according to JinkoSolar’s disclosure. The transaction price represents a 14.34% premium to book value.

Broader Industry Retreat from U.S. Manufacturing

With JinkoSolar’s announcement, all four major Chinese PV component manufacturers have now disposed of majority or all stakes in their U.S. manufacturing assets, according to the source.

Trina Solar’s Early Exit

Trina Solar moved most decisively, announcing on November 6, 2024—the evening Trump’s election victory was announced—that it would sell its 5GW Texas factory to U.S.-listed company FREYR (later renamed T1 Energy). Trina received $100 million in cash, $150 million in preferred notes, and 46 million FREYR common shares. Following the December 2024 asset transfer, Trina holds 17.4% of T1 Energy. Wood Mackenzie predicts T1 Energy will capture 12% of the U.S. component market by 2027, becoming the second-largest domestic supplier after First Solar.

JA Solar’s Complete Divestment

JA Solar announced in January 2023 that it would invest $60 million to build a 2GW component factory in Phoenix, Arizona. In March 2025, JA Solar sold 100% of the U.S. factory to Corning, a specialty glass and ceramic materials manufacturer, for $227 million, according to its Hong Kong stock prospectus.

LONGi and Canadian Solar’s Minority Holdings

LONGi Green Energy originally chose a joint venture structure with U.S. clean energy developer Invenergy to build a 5GW factory in Ohio, with LONGi holding 51% and Invenergy 49%. According to sources, LONGi has since reduced its stake to 19.9% as of last year.

Canadian Solar (Aiko) established a joint venture with its U.S.-listed parent company Aiko Solar (CSIQ) in November 2025 to operate U.S. PV and energy storage businesses, reducing its stake to 24.9%.

Regulatory and Market Context

The U.S. “Big and Beautiful Act,” effective July 2025, restricts foreign entity investment in U.S. clean energy manufacturing. If a single foreign entity holds more than 25%, or multiple foreign entities collectively hold more than 40%, or if foreign entities hold more than 15% in unpaid debt, the facility is designated a “Prohibited Foreign Entity” (PFE) and loses eligibility for IRA clean energy tax credits, according to the source.

These regulatory changes followed Trump’s election victory in November 2024. During his campaign, Trump criticized the Biden administration’s Inflation Reduction Act (IRA) as a “green scam” and pledged to immediately repeal it if elected, directly threatening the profit expectations of Chinese PV manufacturers’ U.S. factories.

The U.S. market has historically offered significantly higher margins for PV components—approximately three times the price of other regions—making it both attractive and strategically important for Chinese manufacturers despite trade barriers, according to the article.

Historical Context: From Southeast Asia to Direct U.S. Manufacturing

Since 2011, the U.S. has imposed multiple rounds of trade sanctions on PV products imported from China. To preserve access to this high-margin market while circumventing tariff barriers, Chinese PV companies collectively established factories in Southeast Asia, which became a representative global strategy in the industry, according to the source.

By 2023, Southeast Asia (Cambodia, Malaysia, Thailand, and Vietnam) supplied 70% of U.S. PV cell imports and nearly 83% of component imports, with most originating from Chinese PV companies’ Southeast Asian operations.

However, in 2022, the U.S. launched anti-circumvention investigations into Southeast Asian PV products, attempting to block Chinese companies’ indirect export channels. Combined with the IRA’s tax credits and substantial subsidies, major component manufacturers began withdrawing from Southeast Asia and pivoting to direct U.S. factory construction.

The FH JKV Connection to Shi Zhengrong

FH JKV Holdings Limited, the buyer of JinkoSolar’s U.S. factory stake, is a newly established entity with registered capital of only $1,500, according to the announcement. The actual controller is Zhang Wei, an Australian national.

Based on personal information disclosed in Asia Silicon (Qinghai) Co., Ltd.'s (Asia Silicon) prospectus and industry sources, Zhang Wei is the spouse of Shi Zhengrong, founder of the former Suntech Power.

Shi Zhengrong, once called the “godfather of solar,” founded Wuxi Suntech in January 2001. In December 2005, Suntech became the first Chinese private PV company to list on the U.S. main board. In 2006, Shi ranked 350th on the Forbes Global Rich List with a net worth of $2.2 billion, becoming mainland China’s richest person. However, in March 2013, Wuxi Suntech filed for bankruptcy restructuring, and in February 2014, it delisted from the NYSE, marking the end of a generation of PV giants.

Although fading from public view, Shi remained active in the industry. Asia Silicon, which he founded, sought a Science and Technology Innovation Board IPO in 2020 but withdrew the application in May 2022. After the failed IPO listing, Asia Silicon was acquired by Zhejiang Red Lion Holding Group in late 2022. In retrospect, Shi sold Asia Silicon at its peak—beginning in Q2 2023, polysilicon prices collapsed, and no silicon material company escaped unscathed.