In a move aimed at bolstering domestic production, US President Donald Trump has announced a 15% tariff on imported products made with polysilicon, a critical material essential for semiconductor manufacturing and solar panel production. The tariff is set to be implemented on December 4, with the goal of reducing the nation’s dependence on Chinese imports in these sectors. Polysilicon, known for its ultra-pure silicon form, plays a crucial role in the manufacture of semiconductors that drive artificial intelligence systems and power data centers, as well as in the production of solar cells and panels. China currently dominates the global production of this valuable material.
The newly introduced measures also establish minimum import prices for various polysilicon products: $21 per kilogram for polysilicon itself, $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, thereby strengthening critical supply chains linked to economic and national security.
China has expressed criticism of the US decision, accusing the administration of using national security concerns as a pretext to impose restrictions on Chinese businesses. Chinese officials have warned that such protectionist measures could potentially disrupt trade relations between the two countries.
In the United States, two major facilities currently lead polysilicon production, operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. The latest policy also allows the US government to introduce incentives for companies investing in domestic polysilicon and related manufacturing facilities, aiming to further support the industry.
This development takes place as China continues to experience robust growth in its export sectors, particularly in electronics, artificial intelligence-related products, and other areas of high-value manufacturing. The US tariffs come at a time when the global trade landscape is increasingly focused on technological advancements and the strategic importance of maintaining secure supply chains.