FIRST SOLAR (+) : Much Ado on Section 232

Research evidence excerpt

FIRST SOLAR (+) : Much Ado on Section 232

s. FSLR is not sure where 38c/W comes from nor does the company have special sources confirming / denying

this amount. The 30% ad valorem tax also was not discussed by the company. That said, FSLR is more confident the

tariff would be structured as a minimum import price with no quota threshold, consistent with rumors, partly because

this tariff scheme is both simpler to implement and more difficult to manipulate than legacy practice of applying some

% fee on landed price. Further, FSLR deems likely any incremental tariffs or penalties (122, AD/CVD) would layer on

top of the minimum import price. All said, FSLR reiterated optimism, citing the S232 outcome presents ‘asymmetric’

upside to future pricing power, though the company is cautious to confirm investors’ high expectations as the ruling is

subject to final Trump sign-off. Impact to bookings & ASPs – High 232: A high outcome this summer likely results in

bookings surge during 3Q26 & 4Q26 print. FSLR maintained its unlikely ASPs would inflect much higher than 40c/W

even assuming 38c/W min. import price. On volumes, high 232 would drive FSLR to re-ramp SE Asia manufacturing,

currently underutilized, to 2 GW for new ‘27 bookings – the most immediate upside driver. That said, SE Asia wouldn’t

ramp back to 3.5 GW as an outsized portion of equipment was sent to US for the 3.3 GW finishing line. Selling India

Panels to US: ‘High 232’ pricing would support shipping India-made panels to US as ~40c/W ASPs outweighs risk that

higher India tariffs, freight / fuel costs and demurrage unexpectedly buoy costs. But there’s ~one year lead time between

when FSLR decides to sell India panels to US and shipping panels, as FSLR would need to retool facilities to produce

tracker panels.