Shares of JinkoSolar Holding Co., Ltd. (JKS) soared by 5.17% on Wednesday, outperforming the broader market. This surge came after First Solar Inc. (FSLR) initiated legal action against JinkoSolar, accusing the Chinese solar firm of infringing on First Solar's U.S. Patent No. 9,130,074, which covers methods of manufacturing Tunnel Oxide Passivated Contact (TOPCon) crystalline silicon photovoltaic solar cells.
First Solar, a leading U.S.-based solar technology company, obtained the TOPCon patents through its acquisition of TetraSun in 2013. The company claimed that prior interactions with JinkoSolar regarding the alleged infringement were unproductive, prompting the legal action to enforce its patent rights.
Interestingly, investors appear to have interpreted First Solar's legal move as a potential competitive advantage for JinkoSolar in the TOPCon solar cell technology space. This perception could bode well for JinkoSolar's future business prospects and profitability, explaining the stock's significant surge during Wednesday's intraday trading session.
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