In a significant policy move, US President Donald Trump has announced a 15% tariff on imported products made with polysilicon, a crucial material in the manufacturing of semiconductors and solar panels. This new tariff, set to take effect on December 4, aims to bolster domestic production and decrease dependency on imports from China, the global leader in polysilicon production.
Polysilicon, an extremely pure form of silicon, is essential in creating semiconductors for artificial intelligence systems and data centers, as well as solar cells and panels. The US administration has introduced this measure, which includes minimum import prices, to ensure the commercial viability of domestic polysilicon production and to reinforce critical supply chains vital to economic and national security. The specified minimum import prices are $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots and wafers, $0.22 per watt for solar cells, and $0.38 per watt for solar modules and panels.
This strategic move has drawn criticism from China, which accuses the US of exploiting national security issues to unfairly limit Chinese business operations. China warns that such protectionist measures could potentially disrupt trade relations between the two countries, which are already tense given China’s strong export growth in electronics, AI-related products, and other high-value manufacturing sectors.
The United States currently hosts two major polysilicon production facilities: Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. Beyond the tariffs, the new policy framework allows for the establishment of incentives aimed at encouraging companies to invest in domestic polysilicon and associated manufacturing infrastructure. This initiative reflects a broader strategy to enhance the resilience of domestic supply chains in critical technology areas.