Corning Acquires JA Solar's US Factory Amid Tightening Tax Credit Rules for Chinese Parts

Corning has acquired JA Solar's 2 GW factory in Arizona, expanding its solar capabilities in the US. The acquisition comes as new tax credit rules tighten, making it harder for solar companies to tap into federal tax breaks if they have more than 60% of their materials from China. JA Solar is the second Chinese solar company to sell its US factory since the US presidential election, following Trina Solar's sale of its Texas factory to T1 Energy.

Corning Incorporated has announced the acquisition of JA Solar's 2 GW module assembly plant in Arizona, marking a significant expansion of its solar capabilities in the United States. This move comes at a time when new tax credit rules are making it more challenging for solar companies to access federal incentives if they rely heavily on Chinese materials [1].

The acquisition, which will be an asset of American Panel Solutions, a wholly-owned subsidiary of Corning, is the second Chinese solar company to sell its U.S. manufacturing facility since the 2024 U.S. presidential election. Trina Solar sold its 5 GW module assembly plant in Texas to T1 Energy last year [1].

The sale of JA Solar's U.S. facility is part of a broader trend of Chinese solar companies reducing their presence in the U.S. market. The Trump administration's massive tax-and-spending act has ended incentives for projects tied to China, making it more difficult for Chinese manufacturers to compete in the U.S. market [3].

The new tax credit rules, known as the foreign entities of concern (FEOC) materials, will limit the ability of solar companies to benefit from production tax credit (PTC) and investment tax credit (ITC) incentives if material assistance from prohibited foreign entities exceeds certain thresholds [2]. For solar components, the threshold is 60% in 2026, increasing to 85% after 2029 [2].

Corning's acquisition of JA Solar's facility is part of its strategy to vertically integrate its manufacturing capacity in the U.S. The company has also announced plans to build a solar wafer manufacturing plant in Michigan and has partnered with solar manufacturers Sunniva and Heliene to produce modules with components manufactured in the U.S. [1].

The acquisition of JA Solar's facility will allow Corning to leverage its advanced manufacturing expertise and expand its solar capabilities in the U.S. The company aims to serve the demand for reliable, affordable energy in the United States [1].

References:
[1] https://www.pv-tech.org/corning-acquires-ja-solar-2gw-us-module-assembly-plant/
[2] https://www.solarpowerworldonline.com/2025/07/hr1-keeps-solar-manufacturing-credits-but-adds-new-hurdles/
[3] https://asia.nikkei.com/Business/Energy/Chinese-solar-companies-shrink-US-footprint-as-Trump-cuts-incentives