JinkoSolar Halts Silicon Solar Component Expansion Amid Oversupply

JinkoSolar

Chinese solar giant pauses growth after massive ramp-up in recent years

Oversupply Forces JinkoSolar to Pause Capacity Expansion

JinkoSolar has announced a halt to its wafer and module capacity expansion plans for 2025 due to global oversupply. The Chinese manufacturer will maintain current capacities: 120GW for wafers and 130GW for modules through the end of the year. Meanwhile, the company will cut cell capacity to 95GW by shutting down outdated facilities, down from 110GW in 2024.

In 2024, Jinko ramped up capacity dramatically — increasing wafers from 75GW and modules from 90GW in 2023. However, as other solar manufacturers pursued similar growth strategies, supply rapidly outpaced demand. Now Jinko is adopting a cautious stance and focusing only on upgrading to TOPCon (tunnel oxide passivated contact) technology.

TOPCon Technology Leads Product Shift

JinkoSolar’s strategic focus is now on TOPCon-based n-type cells, which offer higher efficiency and a pricing premium. N-type modules made up 90% of Jinko's 2024 shipments, indicating the shift away from traditional p-type modules. Chairman and CEO Li Xiande stated that no further capacity expansion will occur beyond technological upgrades in 2025.

Despite a softer Q1 outlook — with estimated shipments of 16–18GW, down from 19.99GW last year — Jinko still expects to ship 85–100GW of modules this year. The firm continues to supply over 50% of its output to the Chinese market, where module demand rose 28% to 277GW in 2024. However, price declines across the supply chain pressured profits despite record installations.

Global Diversification and Regional Focus

Overseas markets remain a key priority for Jinko, particularly the US and Middle East. Its 2GW production facility in the US is running near full capacity, serving strong demand for n-type modules. The company is also constructing a new manufacturing site in Saudi Arabia, scheduled to begin operations in late 2026.

As global solar adoption increases, manufacturers face the challenge of balancing capacity with demand volatility. JinkoSolar’s pivot toward high-efficiency technology and geographical diversification reflects its response to changing market dynamics.

The Metalnomist Commentary

JinkoSolar's shift from aggressive expansion to strategic consolidation highlights the maturing phase of global solar manufacturing. As price pressure intensifies, the race is no longer just about scale, but also efficiency, regional balance, and technological leadership.