Before 2005, the polysilicon manufacturing industry was dominated by companies from the United States, Europe, and Japan. With China's expansion and investment in the photovoltaic field, this situation has reversed. In 2023, approximately 91% of the polycrystalline silicon used for photovoltaic modules was produced in China.

China controls approximately 80% of the photovoltaic cell market, and many Chinese battery manufacturers also produce silicon wafers or modules, which have cost advantages, while the United States currently does not have photovoltaic cells. In the past few years, the last few manufacturers either withdrew from the United States or went bankrupt. Many companies have stated that they are planning to build photovoltaic cell factories in the United States after the passage of the Inflation Reduction Act.

Photovoltaic module manufacturing is the simplest and least capital intensive link in the photovoltaic industry chain, and it is also the most widely distributed link around the world. By 2023, China accounts for 83% of global solar panel production, while the United States accounts for less than 2%.

China has lower labor costs. From engineers to factory workers, everyone in China earns much lower wages than in the United States. The shift time in Chinese factories is often longer than in the United States, which improves productivity. Due to the limited photovoltaic manufacturing industry in the United States, it is necessary to train most of the workforce from scratch. Compared to factories in China, the construction of new factories may be delayed and will take longer to complete.

In the United States, the production capacity of packaging materials such as glass and frames is also very small. This has resulted in a 44% lower cost of producing photovoltaic modules in China compared to the United States.trina solar panels