WASHINGTON: The global race for control of critical technology and clean energy resources has entered a new phase as the United States moves to challenge China’s dominance in the polysilicon market.
The White House on Thursday announced new trade measures, including a 15% tariff and minimum price limits on polysilicon products, to strengthen domestic manufacturing of materials vital for semiconductor chips and solar panels.
The measures were introduced by US President Donald Trump under Section 232 of the Trade Expansion Act of 1962 and are aimed at supporting industries considered important to artificial intelligence, renewable energy and national security.
“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 stated.
Polysilicon, an ultra-pure form of silicon, is a key component in the production of solar panels and semiconductor chips. It is processed into silicon wafers, which are later used in manufacturing solar cells and advanced electronic devices.
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US solar manufacturers have for years accused Chinese competitors of unfair trade practices, including benefiting from government subsidies, flooding markets with low-cost products and shifting production overseas to avoid tariffs.
The United States currently has two major polysilicon manufacturing facilities. Hemlock Semiconductor operates a plant in Michigan through a joint venture between Corning and Japan’s Shin-Etsu Handotai, while Germany-based Wacker Chemie runs a facility in Tennessee.
Corning welcomed the decision, saying it would encourage continued investment in US production capacity. Wacker Chemie said it was reviewing the policy to assess its impact.
The new trade framework sets minimum import prices of $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.
The White House said the measures will take effect on December 4 and will allow the Commerce Department to establish incentives for companies investing in polysilicon and related manufacturing facilities.
Major US solar firms, including T1 Energy, First Solar and Qcells, supported the move, saying it would strengthen domestic production and improve energy supply chains.
“This is a decisive win for advanced American manufacturing and investment in domestic energy supply chains,” T1 Energy CEO Dan Barcelo said.
Although US solar manufacturing has expanded following federal incentives introduced in 2022, much of the growth has focused on panel assembly rather than producing wafers and cells, leaving companies reliant on imported components.
The Semiconductor Industry Association estimates that chip production accounts for about 2.4% of global polysilicon demand, while the solar sector remains the largest consumer of the material.
Trade experts warned that the delayed implementation of the measures could encourage a short-term rise in imports as businesses adjust contracts before the new rules begin.
The decision reflects Washington’s wider strategy to reduce supply chain risks and strengthen its position in key technology and energy sectors amid growing competition with China.
