Two Taiwanese companies will create a joint venture to install a 1 GW annual solar module factory in the United States , in a new bet on industrial relocation and the growth of electricity demand linked to artificial intelligence data centers.
The operation will be driven by Sino-American Silicon Products (SAS) and United Renewable Energy (URECO) , which plan to invest approximately USD 40 million in the plant's development. SAS will control 51% of the company, and URECO will retain the remaining 49%.
The new company will be led by Fred Yeh and will focus on local manufacturing, serving North American customers, and developing a more traceable supply chain. The location and timeline for starting production have not yet been announced.
The investment comes as the United States seeks to expand its energy and industrial independence and reduce its reliance on imported photovoltaic components. At the same time, the growth of digital infrastructure is generating new demands for reliable, low-emission electricity.
Data centers designed for artificial intelligence require large volumes of energy and are accelerating the procurement of renewable energy generation. This demand creates opportunities for manufacturers capable of offering modules with long-term availability, control of origin, and compliance with US commercial requirements.
The partnership will combine SAS's expertise in solar cell technology, international manufacturing and supply chain integration with URECO's capabilities in engineering, module production and marketing.
SAS has over four decades of experience in semiconductors and renewable energy. Within the joint venture, it will act as a strategic investor and resource coordinator, as well as contribute operational expertise for the commissioning of the industrial platform.
URECO, for its part, already has a commercial presence in the United States and has 21 years of experience in photovoltaic research, development, and manufacturing. The company will contribute its sales channels, engineering expertise, and quality management capabilities.
Its brand has been recognized on several occasions by the Taiwanese industry and has been included by BloombergNEF among the Tier 1 module manufacturers, a classification linked to bankability and participation in funded projects.
The new factory will aim to supply large-scale projects with products manufactured in the United States and a verifiable supply chain. This feature is gaining importance in light of trade restrictions, regulatory changes, and increased scrutiny of the origin of solar components.
Traceability no longer responds solely to environmental or reputational criteria. It also influences access to incentives, equipment eligibility, and the risk of disruptions during project construction.
For this reason, the joint venture will focus on supplier transparency, long-term compliance, and the ability to guarantee deliveries to customers in the United States and other North American markets.
“This alliance reflects both companies’ confidence in the sustained growth of the U.S. market and highlights the technological and manufacturing expertise developed by Taiwan’s renewable energy industry,” said Doris Hsu, president of SAS.
The directive stated that the objective will be to establish a local supply platform capable of supporting the expansion of renewable generation and domestic manufacturing.
Sam Hong, president of URECO, considered that the operation brings together two complementary players in the Taiwanese solar chain and demonstrates the role that the country can play within an industry conditioned by geopolitical changes.
Data centers accelerate solar relocation
The energy demand associated with artificial intelligence is becoming a new driver of renewable energy investment in the United States. Large technology companies need to secure additional electricity supplies to support the expansion of their facilities and meet their decarbonization goals.
This growth not only drives new solar and wind farms and storage systems, but also increases the pressure on the industrial chain responsible for supplying modules, transformers, batteries, and other equipment needed to build them.
In this scenario, local manufacturing offers advantages related to delivery times, logistical certainty, and the ability to comply with regulatory and tax requirements.
The alliance between SAS and URECO seeks to capitalize on this trend with an initial capacity of 1 GW, enough to supply several large-scale photovoltaic projects each year.
The $40 million investment is limited compared to other factories announced in the US market, so its competitiveness will depend on the degree of automation, the origin of the cells and the effective use of the plant.
The evolution of the U.S. trade and incentive framework will also be a determining factor. Changes in tariffs, tax credits, and restrictions on foreign suppliers can quickly alter the profitability of new facilities.
Even so, the decision confirms that Asian companies continue to seek mechanisms to enter the US market through domestic production, rather than relying exclusively on exports.
With this new partnership, SAS and URECO aim to integrate materials, technology, manufacturing, and sales within a single structure. The next step will be to determine the plant's location and when it will begin supplying its first gigawatt of production capacity to the US solar market.