Download this article in PDF format.
Last week, the White House took new measures to curb the imports of polysilicon and its derivatives into the U.S. Announced via an official proclamation, the move impacts both the semiconductor and solar power supply chains. The document highlights the essential nature of polysilicon to the “national security and economy of the United States,” and how this base material for semiconductors is produced mostly offshore.
The document also says semiconductors are “critical inputs for United States defense systems, such as radar and communication systems, electronic warfare and cybersecurity systems, and guidance and control systems for missiles and drones.” Polysilicon is also essential to solar product manufacturing, it adds, as both solar-grade polysilicon and derivative solar products support various national defense programs and artificial intelligence (AI) innovations.
“For decades, foreign governments — recognizing the strategic importance of polysilicon and polysilicon derivatives –– designed policies to increase the production of these products in their countries, which have come at the expense of the United States industry,” the White House explains. “These policies contributed to global oversupply in polysilicon and polysilicon derivative sectors.”
Laying Out the New Rules
The proclamation places minimum prices on polysilicon and several products made from it starting Dec. 4, 2026. It also adds tariffs, new documentation requirements for importers and incentives for companies that invest in U.S. production.
The main changes include:
- Minimum import prices. $21 per kilogram for polysilicon, $100 per kilogram for ingots and wafers, $0.22 per watt for solar cells and $0.38 per watt for solar modules.
- A new 15% tariff. Polysilicon ingots and other covered derivatives will face an additional 15% duty. The proclamation sets different terms for imports from some U.S. trading partners.
- New paperwork for importers. Companies will have to document that covered imports meet the minimum price or qualify under a contract signed before the proclamation. Goods priced below the minimum may face an additional tariff covering the difference.
- Tougher enforcement policies. U.S. Customs and Border Protection will check those filings, and importers that submit “materially inaccurate” documentation can be permanently barred from bringing covered products into the U.S.
With the goal of bringing more of the polysilicon supply chain into the U.S., the proclamation also authorizes incentives for companies that build, expand or refurbish domestic plants producing polysilicon, ingots, wafers and cells. Also, companies with approved onshoring plans may qualify for relief from some of these Section 232 duties while they build or expand U.S. facilities.
“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 White House says.
Industry Response
Response to this latest round of tariffs has been mostly positive. According to Reuters, American solar factories have been accusing their Chinese rivals of dumping solar panels in the market for a decade. “U.S. solar manufacturing has expanded since Congress created tax incentives in 2022,” the news service says. “Much of that growth, however, has been concentrated in panel assembly, leaving manufacturers dependent on imported wafers and cells, which require longer investment timelines.”
The new development comes as domestic manufacturers have spent years pushing for tougher trade protections welcomed the new measures, saying they could help domestic producers compete against lower-priced imports and invest in more U.S. production. “This is a decisive win for advanced American manufacturing and investment in domestic energy supply chains,” said T1 Enegy CEO Dan Barcelo in a statement, according to Reuters.
