(WASHINGTON, USA) – The United States has imposed new trade measures on polysilicon, a key raw material used in semiconductors and solar panels that is mainly produced by China. The White House announced a 15% tariff and a series of minimum import prices on products made from the material on Thursday.
President Donald Trump issued the order under Section 232 of the Trade Expansion Act of 1962. The move is designed to support domestic chip and solar supply chains needed to compete with Beijing on artificial intelligence and energy.
“The plan of action in this proclamation will, among other things, help ensure the commercial viability of United States production of polysilicon and its derivatives that is necessary to meet United States economic and national security requirements,” the order said.
Polysilicon is an ultra pure form of silicon that sits at the start of the semiconductor and solar manufacturing supply chains. Manufacturers turn silicon wafers into solar cells and then assemble those cells into panels used in solar projects.
American solar factories have spent the last decade accusing Chinese rivals of dumping solar panels in the market, receiving unfair government subsidies and moving manufacturing to other countries to avoid United States tariffs.
The United States has two polysilicon factories. Hemlock Semiconductor operates a plant in Michigan as a joint venture between Corning and Japan’s Shin Etsu Handotai. Munich based Wacker Chemie runs a factory in Tennessee.
“Today’s decision encourages continued investment in U.S. capacity and supports long term U.S. competitiveness,” a Corning spokesperson said.
Wacker said it was reviewing the actions to fully understand their impact. “We appreciate the Administration’s continued engagement on the issue given the ramifications for semiconductor supply chain resilience, advanced computing infrastructure, and broader U.S. defense and security interests,” the company said in a statement.
Domestic semiconductor manufacturing depends on solar because the solar industry’s larger demand for polysilicon helps support production of the material required for chips. The chip industry accounts for 2.4% of global polysilicon demand, according to the Semiconductor Industry Association.
United States solar manufacturing has expanded since Congress created tax incentives in 2022. Much of that growth has been concentrated in panel assembly, leaving manufacturers dependent on imported wafers and cells, which require longer investment timelines.
Companies with American solar factories, including T1 Energy, First Solar and Qcells, the United States solar arm of South Korea’s Hanwha, welcomed the move.
“This is a decisive win for advanced American manufacturing and investment in domestic energy supply chains,” Dan Barcelo, chief executive officer of T1 Energy, said in a statement. In addition to its Texas solar panel plant, T1 is investing 510 million US dollars (about 701 million Canadian dollars, or roughly 406 million British pounds) in a cell factory.
The trade protections will 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 that the delayed start could lead to a surge of imports in the coming months.
Companies that buy solar panels have argued that the delay is needed to adjust supply contracts to higher prices.
According to a White House document, the president set minimum import prices of 21 US dollars per kilogram for polysilicon, 100 US dollars per kilogram for polysilicon ingots and wafers, 0.22 US dollars per watt for solar cells and 0.38 US dollars per watt for solar modules, or panels.
The proclamation also gives the Commerce Department authority to create an incentive programme for companies that invest in factories to produce polysilicon or derivative products.
The administration’s plan to pursue a hybrid system combining a minimum import price with tariffs was first reported by Reuters.