In a move to bolster domestic production and lessen dependency on China, US President Donald Trump has announced a 15% tariff on imported products made with polysilicon, effective December 4. Polysilicon, an ultra-pure form of silicon, is crucial in the manufacturing of semiconductors and solar panels. This decision is part of a strategic effort to strengthen critical supply chains tied to economic and national security.
China currently leads the world in polysilicon production, a material vital for powering artificial intelligence systems and data centers, as well as for producing solar cells and panels. The new US measures set a minimum import price of $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 US administration’s initiative is designed to support the commercial viability of American polysilicon production. To further this goal, the policy allows the federal government to create incentives for companies investing in domestic polysilicon and related manufacturing facilities. Currently, the United States has two major polysilicon production sites operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee.
China has criticized the tariff, accusing the US of misusing national security concerns to restrict Chinese businesses. Beijing warns that such protectionist measures could disrupt trade between the two countries, particularly as China continues to experience robust growth in exports, including electronics and artificial intelligence-related products.