In a move aimed at bolstering domestic manufacturing and lessening dependence on China, US President Donald Trump has announced a 15% tariff on imported goods composed of polysilicon. This tariff, taking effect on December 4, targets a critical material used in semiconductor and solar panel production.
Polysilicon, an ultra-pure form of silicon, is essential for creating semiconductors within artificial intelligence systems and data centers, as well as for manufacturing solar cells and panels. Currently, China dominates the global production of this material. The US administration’s new tariffs will set 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.
The US government argues that these measures will bolster the commercial viability of domestic polysilicon production while reinforcing critical supply chains tied to economic and national security. In response, China has criticized the US decision, accusing it of misusing national security concerns to limit Chinese businesses and cautioning that increased protectionism could disrupt bilateral trade.
At present, the United States hosts two significant polysilicon production facilities operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee. Alongside the tariff, the US policy allows for the establishment of incentives to encourage investment in domestic polysilicon and related manufacturing facilities.
This tariff announcement comes amidst China’s continued strong growth in exports, particularly in electronics, artificial intelligence-related products, and other high-value sectors. The measure is seen as part of a broader strategy to challenge China’s dominance in these key areas.