Taiwanese solar technology company TOYO has announced plans to build a $357m (£286m) solar cell manufacturing facility in the Houston area of Texas. The plant, which is expected to produce up to 3 gigawatts of solar cells per year, will serve the rapidly expanding US solar market. The announcement comes as American policymakers push to onshore critical clean energy supply chains and reduce dependence on Chinese imports.
The new facility is part of a broader trend among Asian solar manufacturers to establish production bases in the United States, driven by the Inflation Reduction Act's tax incentives and rising tariffs on Chinese-made solar components. TOYO already operates a module assembly plant in Texas and sees the new cell factory as a natural expansion to capture more value from the domestic solar boom.
For UK investors and pension holders with exposure to global clean energy funds, the development underscores the shifting geography of solar manufacturing. Shares in major solar equipment suppliers and developers have been volatile this year, with the Invesco Solar ETF down roughly 20 per cent year-to-date amid oversupply concerns. However, reshoring trends could support margins for US-focused producers over the longer term.
Analysts at Wood Mackenzie have noted that US solar cell production capacity is expected to exceed 40GW by 2026, up from virtually zero today, as companies like TOYO, Hanwha Qcells, and First Solar ramp up. “This is a structural shift that will reshape global trade flows in solar equipment,” said a senior analyst. “It also has implications for UK solar project developers who source panels, as supply chain diversification could lead to more stable pricing.”
The UK's own solar capacity has grown steadily, reaching over 17GW by mid-2025, but domestic manufacturing remains minimal. British firms importing solar panels may benefit from increased competition among suppliers, though tariffs and logistics costs remain factors. The TOYO investment highlights how US industrial policy is drawing capital away from traditional Asian manufacturing hubs, a dynamic that UK trade officials are watching closely.
Source: Reuters, company press release