Key facts
- A new 15% tariff will be imposed on imported polysilicon products.
- The tariff is set to take effect on December 4.
- Polysilicon is a key ingredient for semiconductors and solar panels.
- The measure aims to support U.S. manufacturing and national security requirements.
- Minimum import prices for polysilicon and its derivatives have been recommended.
President Donald Trump has ordered a new 15% tariff on imported products made of polysilicon, a crucial material for manufacturing semiconductors and solar panels. The measure, effective December 4, is intended to bolster U.S. supply chains and competitiveness against China in sectors vital for artificial intelligence and energy.
The executive order states the action will help ensure the commercial viability of U.S. polysilicon production, which is deemed necessary for national security. Polysilicon, an ultra-pure form of silicon, is essential for semiconductors used in AI processing, data centers, and solar power generation.
U.S. solar manufacturers have previously accused Chinese competitors of dumping cheaper panels on the market, facilitated by subsidies and efforts to circumvent existing U.S. tariffs. China's foreign affairs ministry condemned the new tariffs, labeling them protectionist and disruptive to normal trade relations. A spokesperson argued that such measures do not enhance U.S. competitiveness and are not in the interest of U.S. businesses or consumers.
The U.S. currently has two main polysilicon factories: Hemlock Semiconductor in Michigan, a joint venture between Corning and Shin-Etsu Handotai, and a factory in Tennessee run by Wacker Chemie. Representatives from Corning and Wacker Chemie expressed appreciation for the administration's focus on U.S. capacity and supply chain resilience.
President Trump's order also accepted recommendations from Commerce Secretary Howard Lutnick to establish minimum import prices for polysilicon, ingots, wafers, solar cells, and solar modules. Additionally, the commerce department may develop an incentive program for companies investing in U.S. polysilicon production facilities.
This move comes as China reported a significant surge in its exports, driven by AI-related products. Analysts suggest that China's competitiveness in AI hardware and other high-value manufacturing may allow it to continue increasing its global export market share.