In a significant policy shift, US President Donald Trump has mandated a 15% tariff on imports of products made with polysilicon, a crucial component for both semiconductor manufacturing and solar panels. Set to be implemented on December 4, this tariff aims to bolster domestic production capabilities and lessen the country’s dependence on Chinese imports.
Polysilicon, known for its ultra-pure form, is essential in the creation of semiconductors that drive artificial intelligence systems and data centers, along with solar cells and panels. Currently, China stands as the dominant global producer of this material. The new US measures include setting minimum import prices at $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.
According to the US administration, these steps are designed to enhance the commercial viability of domestic polysilicon production and fortify critical supply chains that are vital to both the economy and national security. This policy decision aligns with broader efforts to encourage investments in domestic manufacturing facilities related to polysilicon production. The US currently hosts two significant polysilicon production sites operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee.
The move has drawn criticism from China, which contends that the US is inappropriately invoking national security concerns to limit Chinese business operations. Beijing has cautioned that such protectionist measures could potentially disrupt trade relations between the two nations. Meanwhile, China’s export sector, particularly in electronics, artificial intelligence products, and other high-value manufacturing areas, continues to experience robust growth.