In a strategic move to bolster domestic production and lessen dependence on China, US President Donald Trump has announced a 15% tariff on imported products made with polysilicon, a critical component in semiconductor manufacturing and solar panels. The tariff, which is set to be implemented on December 4, is part of a broader effort to secure supply chains vital to both economic and national security.
Polysilicon, an ultra-pure form of silicon, is essential for creating semiconductors that drive 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 policy also establishes minimum import prices: $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 American government argues that these measures are crucial for sustaining the commercial viability of domestic polysilicon manufacturing. Additionally, the policy includes provisions that allow for the creation of incentives aimed at encouraging investment in US-based polysilicon and related manufacturing facilities. The United States is home to two major polysilicon production sites, operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee.
However, the decision has sparked criticism from China, which accuses the US of exploiting national security concerns as a pretext to limit Chinese businesses. Beijing warns that such protectionist policies could potentially disrupt trade relations between the two nations. Meanwhile, China continues to experience significant growth in exports, particularly within sectors like electronics and artificial intelligence-related products.