In a move aimed at bolstering domestic industry and reducing dependency on Chinese imports, US President Donald Trump has announced a 15% tariff on imported goods made with polysilicon, a crucial component in the production of semiconductors and solar panels. This tariff is set to be implemented on December 4 and accompanies measures designed to support the viability of the US polysilicon industry and fortify supply chains critical to economic and national security.
Polysilicon, known for its ultra-pure silicon form, plays a vital role in manufacturing semiconductors that drive artificial intelligence systems and power data centers, as well as in the creation of solar cells and panels. With China being the top producer of polysilicon globally, the US tariff introduces minimum import prices: $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.
Despite the US administration’s intention to boost domestic production, China has expressed disapproval, accusing the US of exploiting national security concerns to hinder Chinese enterprises. Moreover, China warned that such protectionist measures could strain trade relations between the two countries. This policy shift comes amid China’s expanding export market, particularly in high-tech sectors like electronics and artificial intelligence.
Currently, the United States hosts two significant polysilicon production sites, operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. The new tariff policy not only aims to support these existing facilities but also opens the door for government incentives to encourage further investment in domestic polysilicon manufacturing capabilities.