Its future- forward approach includes signing polysilicon supply deals with Wacker and building up wafer plant in Vietnam.
Early last year, Jinksolar revamped its overseas investment strategy in order to minimize its vulnerability to rising U.S.-China tensions over trade and technology. This strategy includes diversifying its manufacturing base and supply chain away from China, better and longer-lasting deal with contracted polysilicon suppliers worldwide, and an overhaul of the company's aim of building ecosystem.
The expansion of the Vietnam wafer facility using polysilicon from U.S or European suppliers will also contribute to a push in expanding offshore manufacturing, which has become a major issue for U.S. customers, trade organizations and the U.S. government. While the investment beyond of its previous expenditure on cutting-edge factories, it’s a shift for a company that now makes wafer mainly from its home base of China.Because of the anticipated demand for solar energy in the next decade and due to the polysilicon supply chain shortages, calls to diversify material supply sources and expand offshore manufacturing has become a hot topic to stave off future demand issues and prevent the company from potential risks.
Jinkosolar is not the only company that is planning or considering building plants outside China, people with knowledge of the matter said, as Washington promotes non-China production, since the U.S-China tension had split the world into two, solar companies with global footprint are forced to provide “two sets of supply chains”.