SEG Solar, a California-based solar module manufacturer, has commenced the build-out of a 3 GW ingot and wafer manufacturing facility in Batang Regency, Indonesia.

The facility will be expanded to enable the manufacture of 5 GW of ingots and wafers.

The company will invest approximately $80 million in the project, which will be fully funded by the company and constructed on a site spanning around 50,000 square meters. Commercial production at the facility is scheduled to begin in the third quarter of 2026.

The project is a key component of the company’s strategy to establish a fully integrated, non–Foreign Entity of Concern (non-FEOC) solar supply chain to support the U.S. solar market.

The facility will be developed within the SEG Indonesia PV Industrial Park.

EG Solar currently operates a solar module manufacturing facility in the U.S. and a solar cell manufacturing facility in Indonesia, which together form the foundation of its vertically integrated production platform.

With the addition of the 3 GW ingot and wafer facility, the company will establish an end-to-end manufacturing chain covering ingots, wafers, solar cells, and finished photovoltaic modules.

This vertical integration is intended to improve supply chain transparency and traceability while meeting stringent origin and compliance requirements increasingly imposed by the U.S. solar market.

Jun Zhuge, Founder and Chief Executive Officer of PT SEG Solar Manufaktur, said the company’s complementary production capabilities in the U.S. and Indonesia position SEG Solar to deliver a fully traceable and non-FEOC supply chain aligned with both current and upcoming regulatory requirements in the U.S. solar industry.

Globally, SEG Solar has achieved cumulative photovoltaic module shipments of more than 6 GW and currently operates more than 6 GW of module production capacity. The company also has 5 GW of installed solar cell manufacturing capacity across its global operations.

In 2023, SEG Solar announced the acquisition of a manufacturing facility in Texas with the capacity to produce over 2 GW of solar modules.

Solar ingot and wafer manufacturing facilities and equipment in the U.S. will qualify for a 25% investment tax credit under the final regulations for the Advanced Manufacturing Investment Credit, part of the CHIPS Act 2022, announced by the Department of the Treasury and the Internal Revenue Service.