The Trump administration, through the Dept. of Commerce, Bureau of Industry and Security, and the Office of Strategic Industries and Economic Security, has initiated a Sec. 232 investigation into the polysilicon industry. The investigation was first launched on July 1 but not made public until July 14.
Credit: Hemlock
The government aims to determine the effects on the national security of imports of “polysilicon and its derivatives.” Polysilicon is used in silicon solar panels and semiconductors. An investigation under Sec. 232 of the Trade Expansion Act of 1962 allows the federal government to impose tariffs on imported products if they are deemed to be a threat to national security. Steel and aluminum imports have been met with Sec. 232 tariffs since 2018.
The Dept. of Commerce has requested public comments on the demand for polysilicon in the United States and whether domestic production can meet such demand.
Solar Power World previously wrote an investigative article on the solar polysilicon market in the United States, a story that won a national journalism award for reporting. Polysilicon production in the United States was essentially gutted during the China-America trade war of the 2010s. The “big three” U.S. polysilicon producers — Hemlock, Wacker and REC Silicon — saw their market share shrink from $1 billion in 2011 to $107 million in 2018 after China placed high duties on American-made polysilicon. China has since overtaken the global market, now estimated to hold a 93.5% market share.
Hemlock and Wacker are still producing polysilicon in the Untied States, both for the solar and electronics markets, but REC Silicon has since dropped out. New company Highland Materials is attempting to start a polysilicon production plant in Tennessee. There are also a handful of non-China players that contribute to the solar industry, including OCI in Malaysia and Wacker’s German plant.
Chinese polysilicon imports are already under Sec. 301 tariffs of 50%. Sec. 301 of the Trade Act of 1974 allows the government to respond to foreign trade practices that burden or restrict U.S. commerce.
The U.S. government is accepting comments on this investigation through August.
