President Trump signed an executive order on Thursday establishing a 15% tariff on imported polysilicon products, with implementation scheduled for December 4. The administration characterizes the measure as necessary to support the commercial viability of domestic chip and solar panel manufacturing in competition with China, citing economic and national security requirements.
Polysilicon, an ultra-pure form of silicon, serves as a critical ingredient in semiconductor manufacturing for artificial intelligence processing and data centers, as well as in solar power generation. The tariff establishes 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. The order also authorizes the commerce department to develop incentive programs encouraging domestic production facilities.
The United States currently operates two major polysilicon factories: Hemlock Semiconductor in Michigan, a joint venture between Corning and Japan’s Shin-Etsu Handotai, and Wacker Chemie’s facility in Tennessee. Both companies responded positively to the announcement. Corning stated the tariff encourages further US investment and competitiveness, while Wacker cited benefits for semiconductor supply chain resilience and national defense interests.
China’s foreign affairs ministry responded critically to the tariff, with spokesperson Lin Jian contending that the US has “overstretched the concept of national security” and arguing that protectionism undermines competitiveness. Chinese officials stated the measure disrupts normal trade relations and does not serve the interests of businesses or consumers, pledging to protect Chinese companies’ rights. The action follows reports that China’s July exports surged 23.9% year-over-year, driven substantially by AI-related product shipments, with analysts suggesting artificial intelligence and electrification will continue driving global manufacturing trends.
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