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The Pacific Mexican state of Baja California is swiftly becoming the region's solar panel manufacturing powerhouse, boosting its profile as the "Silicon Border." In recent weeks, two foreign companies -- Q-Cells of Germany and Kyocera of Japan -- announced new investments totally nearly $4.9 billion in plants that will produce for export mainly to the United States.

Q-Cells, the biggest producer of solar panels in the world, is investing $3.5 billi...