New 15% Tariff Imposed on Polysilicon Imports, Affecting Microchip and Solar Industries

New Tariff on Polysilicon Imports

A new 15% tariff has been ordered on imported polysilicon products, which are a key material in microchip manufacturing and solar panels. This tariff, primarily targeting imports from China, is scheduled to begin on December 4.

Strategic Rationale for the Tariff

The executive order behind the tariff aims to strengthen US chip and solar panel supply chains, fostering domestic competition against Beijing in artificial intelligence and energy. The proclamation states that the action will help ensure the commercial viability of US polysilicon production, which is necessary for national security and economic requirements. Minimum import prices have also been set for polysilicon and its derivatives.

Industry Impact and Reactions

Polysilicon, an ultra-pure form of silicon, is vital for semiconductors used in AI processing, data centers, and solar power generation. US solar factories have previously accused Chinese rivals of dumping cheaper panels, enabled by government subsidies and manufacturing shifts to avoid tariffs. Corning, a US tech company with a polysilicon joint venture, stated the tariff encourages investment in US capacity and supports long-term competitiveness. Wacker Chemie, another US polysilicon producer, also expressed appreciation for the administration's engagement regarding semiconductor supply chain resilience.

International Response

China's Ministry of Foreign Affairs criticized the new measures, accusing the US of overstretching national security concepts and abusing state power against Chinese businesses. A spokesperson stated that protectionism would not make the US more competitive and that the move disrupts normal trade, harming US businesses and consumers. China affirmed it would protect its businesses' legitimate rights and interests.