SEG Solar Breaks Ground on 3 GW Wafer SEG Solar Indonesia Factory, Strengthening U.S. Supply Chain
In a significant move to enhance supply chain resilience, U.S.-headquartered manufacturer SEG Solar has commenced construction on a major solar ingot and wafer factory in Indonesia. The new facility, located in Batang Regency, Central Java, is situated at the company’s existing solar cell manufacturing site and represents a crucial step towards building a vertically integrated, traceable supply chain for the U.S. market.
Facility Details and Strategic Investment in SEG Solar Indonesia Factory
The new factory will have an initial annual capacity of 3 GW for both solar ingots and wafers. This project is backed by an $80 million investment fully funded by SEG Solar and will cover an area of 50,000 square meters. Commercial production is slated to begin in the third quarter of 2026, with a second phase planned to expand the facility’s total capacity to 5 GW. Understanding the financial dynamics of such an undertaking can be complex, and a detailed solar panel manufacturing plant cost breakdown reveals the significant capital required for such large-scale operations.
This development is part of a broader strategy for SEG Solar. The company first secured an 80-year lease for the industrial park in June 2023 and successfully commissioned its n-type solar cell plant on the same site in May 2025, just seven months after construction began.
Building an End-to-End, Non-FEOC Supply Chain with SEG Solar Indonesia Factory
The production of ingots and wafers represents the foundational stage of the solar panel manufacturing process, where high-purity silicon, a key solar panel raw material, is transformed into the building blocks of solar cells. By adding this capability in Indonesia, SEG Solar is creating an end-to-end manufacturing chain that complements its 2 GW PV manufacturing facility in Houston.
This dual-location strategy is designed to create a fully traceable supply chain that is not dependent on Foreign Entities of Concern (non-FEOC), aligning with current and future requirements for the U.S. solar industry.
Jun Zhuge, Founder and CEO of PT SEG Solar Manufaktur, stated, “With complementary production capabilities in the United States and Indonesia, SEG is positioned to deliver a fully traceable and non-FEOC supply chain that meets current and upcoming requirements for the U.S. solar industry.”
Indonesia’s Growing Prominence in the Global Solar Market with SEG Solar Indonesia Factory
SEG’s investment underscores a wider trend of diversification in the solar supply chain, with Indonesia emerging as a key strategic location. The country offers a compelling business case for establishing a solar factory in Indonesia, attracting manufacturers aiming to serve international markets. In fact, other companies like Thornova Solar are also opening plants in Indonesia to meet U.S. demand.
This manufacturing boom is happening as the nation itself ramps up its renewable energy efforts. The ambitious Indonesia solar power target and the development of major installations, including an impressive Indonesia solar PV project, signal a robust domestic market that can further support the manufacturing ecosystem.
SEG Solar’s new facility is a testament to the shifting dynamics of global solar manufacturing. By integrating key production steps in Indonesia, the company is not only expanding its capacity but also building a more secure and transparent supply line for its customers in the United States.
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