First Solar: Third-Party Audit Finds Use of Forced Labor at Malaysia Factory

On Aug. 15, First Solar disclosed that a recent audit found four onsite service providers at its Malaysia factory subjected migrant workers to forced labor. Specifically, the migrant workers were subjected to unethical recruitment, including the payment of recruitment fees in their home countries, passport retention, and the unlawful retention of wages. The company is requiring the service providers to change how they treat workers and agree to periodic reviews by First Solar moving forward. We maintain our prior financial estimates and leave our $185 fair value estimate unchanged. We view the shares as fairly valued.