KUALA LUMPUR – Chinese solar panel manufacturers in Malaysia, including industry giants Jinko Solar, Risen Energy, and JA Solar, have scaled back or ceased operations in response to escalating US tariffs, according to industry sources.
These firms, which collectively represent nearly 40% of Malaysia’s solar production capacity, have faced shrinking profit margins due to heightened US scrutiny and tariffs. Risen Energy, which entered Malaysia in 2021 with plans to invest RM42 billion in Kedah, has significantly reduced production. Meanwhile, Longi Green Energy, accounting for 37% of Malaysia’s solar capacity, halted its expansion plans after investing RM5.4 billion by 2023.
Chinese firms dominate Malaysia’s solar industry, contributing 80% of its 23.6 GW production capacity in 2024. However, with Malaysia exporting $1.8 billion worth of solar panels to the US from January to September 2024, new US tariffs on Southeast Asian imports have dealt a severe blow. Dumping duties as high as 271.2% were imposed, with final determinations expected in April 2025.
Smaller supply chain firms have also felt the impact, leading to potential job losses exceeding 5,000 and reduced tax revenues. Malaysian authorities are now exploring ways to repurpose existing facilities to meet local renewable energy demands.
Analysts predict Chinese manufacturers will increasingly diversify toward emerging markets in Southeast Asia and Africa while exploring new production hubs in Indonesia, Laos, and the US. The ongoing US-China trade tensions, compounded by the Trump administration’s policies, continue to reshape global solar manufacturing dynamics.
