In a move aimed at boosting domestic manufacturing, US President Donald Trump has announced a 15% tariff on imports of products made with polysilicon, a critical component used in both semiconductor manufacturing and solar panels. Set to be implemented on December 4, this tariff seeks to reduce the United States’ dependency on China, which is currently the leading global producer of polysilicon.
Polysilicon is an ultra-pure form of silicon that plays a crucial role in the production of semiconductors powering artificial intelligence systems and data centers, as well as in the creation of solar cells and panels. Alongside the tariff, the US government has introduced 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. These measures are designed to enhance the competitiveness of domestic polysilicon production and reinforce supply chains critical to both economic and national security.
China has reacted critically to the US policy, arguing that it represents a misuse of national security concerns to impose trade restrictions on Chinese companies. The Chinese government has warned that such protectionist measures could lead to trade disruptions between the two nations, particularly as China’s exports, especially in electronics and artificial intelligence-related products, continue to grow.
The US is home to two major polysilicon manufacturing facilities, located in Michigan and Tennessee, operated by Hemlock Semiconductor and Wacker Chemie, respectively. The new policy not only imposes tariffs but also opens the door for the US government to incentivize companies to invest in domestic polysilicon production and related manufacturing infrastructure, aiming to fortify the industry against international competition.
