We design and manufacture solar modules using a proprietary thin film
semiconductor technology that has allowed us to reduce our average solar module
manufacturing costs to among the lowest in the world. Our average manufacturing
costs were $1.59 per Watt in 2005 and $1.50 per Watt in the first nine months of
2006, which we believe were significantly less than those of traditional
crystalline silicon solar module manufacturers. We are the first company to
integrate non-silicon thin film technology into high volume low cost production.
Our manufacturing process transforms an inexpensive 2ft x 4ft (60cm x 120cm)
sheet of glass into a complete solar module in less than three hours, using
approximately 1% of the semiconductor material used to produce traditional
crystalline silicon solar modules. Our ability to attract customers with
competitive pricing, in combination with our replicable low cost manufacturing
process, afforded us a gross margin of 35% both in 2005 and in the first nine
months of 2006. By continuing to expand production and improve our technology
and manufacturing process, we believe that we can further reduce our
manufacturing costs per Watt and improve our cost advantage over traditional
crystalline silicon solar module manufacturers. Our objective is to become, by
2010, the first solar module manufacturer to offer a solar electricity solution
that competes on a non-subsidized basis with the price of retail electricity in
key markets in the United States, Europe and Asia.
First Solar, Inc., a Delaware corporation, was incorporated on February 22,
2006. We operated as a Delaware limited liability company from 1999 until 2006.
Our corporate headquarters are located at 4050 East Cotton Center Boulevard,
Building 6, Suite 68, Phoenix, Arizona 85040 and our telephone number is
(602) 414-9300. We maintain a website at www.firstsolar.com.