BY COMFORT OGBONNA
The White House has announced a sweeping set of trade measures aimed at strengthening domestic production of polysilicon, a critical raw material used in the manufacturing of semiconductors and solar panels. The new policy introduces a 15% tariff alongside minimum import price requirements on a range of polysilicon-related products, marking another step in the administration’s broader effort to reduce U.S. dependence on foreign supply chains and expand strategic manufacturing.
President Donald Trump issued the measures under Section 232 of the Trade Expansion Act of 1962, a law that allows the federal government to impose trade restrictions when imports are determined to threaten national security. Administration officials said the action is designed to reinforce America’s semiconductor and renewable energy industries as the country competes globally in artificial intelligence, advanced computing and clean energy technologies.
According to the presidential proclamation, the new trade actions are intended to ensure the long-term commercial viability of U.S. producers of polysilicon and related products while protecting industries considered essential to the nation’s economic strength and security. Officials argued that maintaining a reliable domestic supply of polysilicon is increasingly important as demand for chips and solar technology continues to rise.
Polysilicon is an ultra-pure form of silicon that serves as the foundation of both semiconductor and solar manufacturing. It is processed into silicon wafers, which are then used to produce semiconductor chips as well as solar cells that are assembled into photovoltaic panels. Although semiconductor manufacturers consume only a small share of the world’s polysilicon supply, the much larger solar industry helps sustain the production capacity required by both sectors.
The administration’s latest move follows years of complaints from American solar manufacturers, who have argued that Chinese companies have benefited from significant government subsidies while selling products below market prices. Industry groups have also alleged that some manufacturers shifted production to third countries to avoid existing U.S. trade restrictions, placing American producers at a competitive disadvantage.
The United States currently has only two major polysilicon manufacturing facilities. One operates in Michigan through Hemlock Semiconductor, a joint venture involving Corning and Japan-based Shin-Etsu Handotai. The other is located in Tennessee and is operated by Germany’s Wacker Chemie. Industry leaders welcomed the administration’s decision, saying stronger trade protections could encourage additional investment in domestic production capacity.
A spokesperson for Corning said the policy supports continued investment in American manufacturing and strengthens the country’s long-term competitiveness. Wacker Chemie said it is reviewing the details of the proclamation to assess its potential impact on operations and future investment.
The company also noted that a resilient domestic supply chain for polysilicon is essential not only for semiconductor production but also for advanced computing infrastructure, defense technologies and other industries that rely on secure access to critical materials.
Domestic solar manufacturers also praised the new measures, arguing that they will help accelerate investment across the U.S. clean energy supply chain. Companies operating American solar facilities said the policy provides greater certainty for long-term manufacturing projects and could encourage the expansion of domestic production beyond panel assembly into upstream components such as solar cells and wafers.
Although U.S. solar manufacturing has expanded significantly since tax incentives were introduced in 2022, much of that growth has focused on assembling imported components into finished panels. Industry analysts note that domestic production of wafers and solar cells has lagged because those facilities require larger investments and longer construction timelines.
Among the companies supporting the administration’s decision is T1 Energy, which is investing approximately $510 million in a new solar cell manufacturing facility in Texas alongside its existing solar panel operations. Company executives described the policy as a significant victory for American manufacturing and domestic energy supply chains.
The trade protections will take effect on December 4, giving manufacturers, importers and buyers several months to prepare for the changes. However, some trade experts cautioned that the delayed implementation could trigger a temporary increase in imports as companies attempt to bring products into the country before the new rules take effect.
Businesses that purchase solar equipment have argued that the transition period is necessary to adjust supply agreements and prepare for the higher costs expected under the new tariff structure.
Under the proclamation, the government established 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 finished solar modules. Imports falling below those thresholds will be subject to the new pricing requirements in addition to the 15% tariff.
The administration also directed the Commerce Department to develop an incentive program aimed at encouraging companies to invest in new U.S. factories producing polysilicon and related products. Officials believe the combination of tariffs, minimum pricing and investment incentives will strengthen domestic manufacturing, reduce reliance on foreign suppliers and improve the resilience of supply chains supporting the nation’s semiconductor, energy and defense industries.
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