In a move to bolster domestic industries, US President Donald Trump has announced the imposition of a 15% tariff on imports of products made with polysilicon, a critical component in the manufacturing of semiconductors and solar panels. Set to take effect on December 4, the tariff is part of a broader strategy to enhance US production capabilities and decrease dependence on Chinese imports.
Polysilicon, an ultra-pure form of silicon, is essential in the production of semiconductors, which are vital for powering artificial intelligence systems and data centers, as well as in the creation of solar cells and panels. Currently, China dominates the global production of polysilicon. To further support the domestic industry, the US administration has established 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 administration argues that these measures are crucial for maintaining the commercial viability of domestic polysilicon production and for strengthening supply chains critical to both the economy and national security. However, China has criticized the tariff, accusing the US of misusing national security concerns to justify trade restrictions on Chinese businesses and cautioning that such protectionist policies might disrupt bilateral trade.
In the US, the polysilicon industry is represented by two major production facilities: Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. The new policy framework also provides for the creation of incentives aimed at encouraging companies to invest in domestic polysilicon and related manufacturing facilities, further supporting the local industry.
This development comes as China continues to report robust growth in its export sector, particularly in electronics, products related to artificial intelligence, and other high-value manufacturing domains. As the global economic landscape shifts, the US aims to secure its position by reinforcing domestic manufacturing and minimizing foreign dependency.