U.S. Tightens Restrictions on Polysilicon: Economic Implications and Semiconductor Market Impact

Recently, the U.S. government has announced measures aimed at strengthening its presence in the global polysilicon supply chain. The decision includes imposing tariffs and minimum import prices on this crucial material used for solar panels and semiconductors to protect American companies from China's dominance in production of this element. This announcement was made during a presidential ceremony where President Donald Trump signed an executive order that will come into effect next December. Tariffs will apply to imported polysilicon, setting minimum import prices at US$ 21 per kilogram and US$ 100 for ingots and wafers made from this material. Cells and solar modules are also affected with initial tariffs of 22 cents per watt and 38 cents per watt respectively. This move is intended to stimulate domestic production and ensure that American companies do not lose out in the global market for this essential material for technological and sustainable development in the country. The decision reflects a broader strategy adopted by the U.S. to diversify its supply sources and enhance industrial self-sufficiency, particularly in strategic sectors such as semiconductors and solar energy.