In a bid to bolster domestic production and lessen dependence on China, U.S. President Donald Trump has announced a 15% tariff on imported products made with polysilicon, an essential material for semiconductor manufacturing and solar panels. Taking effect on December 4, this move is part of a broader strategy to support the commercial viability of U.S. polysilicon production and secure critical supply chains related to economic and national security.
Polysilicon, an ultra-pure form of silicon, is crucial in the production of semiconductors that power artificial intelligence systems and data centers, as well as in the manufacturing of solar cells and panels. With China leading global production of this material, the Trump administration’s decision also includes setting 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.
The United States is home to two primary polysilicon production facilities, operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. In addition to the tariffs, the new policy allows for the establishment of incentives for companies investing in domestic polysilicon and related manufacturing facilities. This initiative comes amid China’s robust growth in exports, particularly in electronics and artificial intelligence-related products.
China has expressed opposition to the U.S. measures, accusing the administration of using national security concerns as a pretext to limit Chinese businesses. The Chinese government warns that such protectionism could disrupt trade relations between the two countries. Despite the criticism, the U.S. administration maintains that these measures are necessary to strengthen critical supply chains.