In a move aimed at bolstering domestic industry, US President Donald Trump has announced a 15% tariff on imported goods produced from polysilicon, a critical component in the manufacture of semiconductors and solar panels. This tariff, set to be enforced starting December 4, seeks to diminish the United States’ dependency on China, the world’s predominant producer of polysilicon. This ultra-pure form of silicon is indispensable in the production of semiconductors for artificial intelligence systems, data centers, and solar cells.
The US administration has also established minimum import prices for polysilicon and its derivatives: $21 per kilogram for the raw material, $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 ensure the competitiveness of domestic polysilicon manufacturing, which is considered vital for both economic stability and national security.
China, however, has criticized the US’s new tariffs, accusing the American government of using national security as a pretext to hinder Chinese businesses. They have warned that such protectionist policies could lead to disruptions in trade between the two nations. This development occurs amidst China’s continuing growth in exports, particularly in electronics, AI-related products, and other high-value manufacturing sectors.
The United States currently hosts two major polysilicon manufacturing sites, operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. Alongside imposing tariffs, the policy allows the US government to introduce incentives for companies that invest in domestic polysilicon production and related manufacturing facilities. This strategy is part of a broader effort to fortify critical supply chains that are essential for the country’s economic and security interests.