In a significant move to boost domestic industry, US President Donald Trump has announced the imposition of a 15% tariff on imports of products made with polysilicon, a crucial component in semiconductor fabrication and solar panel production. This tariff, which is slated to come into effect on December 4, aims to reduce the nation’s dependency on China for this vital material.
Polysilicon, a highly purified form of silicon, is essential in the creation of semiconductors that drive artificial intelligence technologies and data centers, as well as solar cells and panels. With China dominating the global production of polysilicon, the US administration’s new tariff measures are designed to bolster domestic manufacturing capabilities and enhance supply chain resilience, particularly in sectors deemed critical for economic stability and national security.
Alongside the 15% tariff, the US plans to set 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 part of a broader strategy to ensure the commercial viability of US-based polysilicon production and to support related industries.
However, the decision has drawn criticism from China, which argues that the US is unjustly leveraging national security concerns to limit Chinese business operations. Chinese officials warn that such protectionist policies could lead to disruptions in the trade relationship between the two countries, particularly affecting sectors where China has seen robust export growth, such as electronics and artificial intelligence-related products.
Currently, the United States hosts two major polysilicon production facilities operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. The new policy framework also opens the door for the US government to incentivize companies that invest in domestic polysilicon manufacturing and related sectors, further promoting self-sufficiency in critical technology industries.