US invokes Section 232 to control polysilicon: price cap + 15% tariff

According to CCTV News, on August 6 local time, U.S. President Trump signed an executive order invoking Section 232 of the Trade Expansion Act of 1962, implementing a combination policy of minimum import prices and additional tariffs on imported polysilicon and its downstream derivative products, aiming to support the domestic supply chain for polysilicon, semiconductors, and the entire solar industry.

The entire set of policies will officially take effect at 00:01 Eastern Time on December 4, 2026. By establishing a rigid minimum import threshold, products priced below the limit will be blocked from entering the United States, ensuring that domestic manufacturers can achieve profitable sales.

Specific price limit standards: Polysilicon $21/kg; polysilicon ingots and silicon wafers $100/kg; solar cells $0.22/watt; solar modules $0.38/watt. At the same time, an additional 15% ad valorem tariff will be levied on polysilicon ingots and related derivatives listed in the schedule. The U.S. side stated that subsequent adjustments to the rules can be made for countries that have already signed trade agreements.

This executive order simultaneously introduces supporting industrial incentives: the U.S. Department of Commerce has established the "Bring Back to America" plan. Enterprises that commit to building new, modifying, or expanding production lines for polysilicon, silicon ingots, wafers, and solar cells in the United States, and where projects commence before January 20, 2029, may apply for partial exemptions from tariffs under Section 232 on imported equipment and products.

Domestic Capacity Shrinks Significantly, Polysilicon Elevated to National Security Level

Polysilicon is not only the core raw material for photovoltaic panels but also the basic material for semiconductors in chips and various electronic products. It is widely used in defense fields such as radar, communications, missile, and drone control systems. The United States defines it as a key material related to national security.

Historical data shows that the U.S. share of global polysilicon production capacity fell from 50% in 2005 to less than 2% in 2024; the global share of semiconductor wafer manufacturing slumped from 37% in 1990 to 10% in 2024. The photovoltaic sector is even more highly dependent on foreign sources, with silicon ingots, wafers, and cells basically relying on imports.

Currently, only two companies in the United States, Hemlock Semiconductor and Wacker Chemie, retain polysilicon production capabilities. Previously, REC Silicon attempted to restart its Moses Lake factory in Washington State, but it also announced its closure at the end of 2024.

U.S. Secretary of Commerce Howard Lutnick stated at the White House that the United States possesses the industrial foundation, but the existing scale is too small. He hopes to use policy to drive the return of the supply chain and drive rapid expansion in the industry. The White House also values the policy's boost to the domestic semiconductor industry, viewing it as an important part of building U.S. AI infrastructure. Trump stated that he hopes the United States will occupy a significant share in the global chip industry before the end of his term.

Industry Organizations Highly Praise the Measure, Calling it a Milestone Protection for the PV Supply Chain

The trade organization "Coalition for a Prosperous America" spoke highly of this policy. The organization's president, Jon Toomey, stated that this announcement is the most important trade protection measure for the U.S. polysilicon and solar industries in modern times, capable of solving the long-standing problem of price games faced by the industry.

He further pointed out that the United States has, for the first time, completed the protection of the entire solar supply chain through a single administrative measure. On one hand, it establishes barriers to overseas imports, and on the other hand, it rewards domestic factory construction investment, while also strengthening the shortcomings of the domestic semiconductor supply chain. The U.S. hopes to use protective policies to isolate global market price shocks and build a protected environment for the development of domestic industries.