The White House has imposed a 15% tariff and minimum import prices on polysilicon, the raw material behind semiconductors and solar panels that China primarily produces. The trade order, aimed at shoring up domestic supply chains, takes effect on December 4. Solar manufacturers with U.S. factories welcomed the move, while a trade attorney warned the delayed start could trigger a rush of imports beforehand.
The White House on Thursday imposed a 15% tariff and a series of price floors on products made from polysilicon, the raw material used in semiconductors and solar panels that China primarily produces. Trump's proclamation, issued under Section 232 of the Trade Expansion Act of 1962, is meant to support domestic chip and solar supply chains as the U.S. competes with Beijing on artificial intelligence and energy.
Two US factories anchor the supply chain
The United States has two polysilicon factories. Hemlock Semiconductor, a joint venture between Corning and Japan's Shin-Etsu Handotai, runs a plant in Michigan, while Munich-based Wacker Chemie operates a factory in Tennessee. The chip industry accounts for 2.4% of global polysilicon demand, according to the Semiconductor Industry Association.
According to Reuters, a Corning spokesperson said: "Today's decision encourages continued investment in U.S. capacity and supports long-term U.S. competitiveness." Wacker said it was reviewing the actions to fully understand their impact, adding that it valued the administration's engagement on semiconductor supply chain resilience.
Solar makers with domestic plants back the move
U.S. solar manufacturing has expanded since Congress created tax incentives in 2022, though much of that growth has concentrated in panel assembly, leaving manufacturers dependent on imported wafers and cells that require longer investment timelines. Companies with U.S. solar factories, including T1 Energy, First Solar and Qcells, the U.S. solar arm of South Korea's Hanwha, applauded Trump's move. T1 Energy is investing $510 million in a cell factory in addition to its existing Texas solar panel plant.
Delayed start stirs import-surge warning
The trade protections take effect on December 4, the White House said. Tim Brightbill, a trade attorney with Wiley Rein who has brought several trade cases against Chinese solar companies, warned the delayed implementation could lead to a surge of imports in the coming months. Companies that buy solar panels have argued the delay is needed to adjust supply contracts to higher prices.
Under the proclamation, Trump set minimum import prices of $21 per kilogram for polysilicon, $100 per kilogram for ingots and wafers, $0.22 per watt for solar cells and $0.38 per watt for solar modules, according to a White House document. The proclamation also authorizes the Commerce Department to create an incentive program for companies that invest in factories producing polysilicon or its derivatives.
Source: Reuters
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