In a move to bolster domestic industry and reduce dependency on China, US President Donald Trump has announced a new 15% tariff on imported products made with polysilicon, set to take effect on December 4. Polysilicon, an ultra-pure silicon essential for semiconductor and solar panel production, is predominantly produced by China, the world leader in this market. The tariff aims to strengthen the U.S. production capacity of this critical material, which is vital for manufacturing semiconductors that power artificial intelligence systems and data centers, as well as solar energy components.
To further reinforce the domestic market, the administration will also implement minimum import pricing: $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 local polysilicon manufacturing and to fortify supply chains tied to economic and national security concerns.
Reacting to the announcement, China has criticized the U.S. decision, accusing it of exploiting national security issues as a pretext to limit Chinese business operations. The Chinese government warns that such protectionist policies could adversely affect trade relations between the two countries, at a time when China is experiencing robust growth in exports, particularly in electronics and high-value manufacturing sectors like artificial intelligence.
The United States currently hosts two major polysilicon production facilities, operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. The new tariff policy includes provisions for the U.S. government to establish incentives for companies that invest in domestic polysilicon and related manufacturing capabilities, underscoring the strategic importance of this sector.
