Trump unveils trade actions to compete with China on solar and chips - Hawaii Tribune-Herald
WASHINGTON — The White House on Thursday imposed a series of price floors and a 15% tariff on products made from polysilicon, the raw material used in semiconductors and solar panels that is primarily. . .
WASHINGTON — The White House on Thursday imposed a series of price floors and a 15% tariff on products made from polysilicon, the raw material used in semiconductors and solar panels that is primarily produced by China. U. S. President Donald Trump’s proclamation under Section 232 of the Trade Expansion Act of 1962 is aimed at supporting domestic chip and solar supply chains needed to compete with Beijing on artificial intelligence and energy. “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 order said. Polysilicon, an ultra-pure form of silicon, sits at the start of the semiconductor and solar manufacturing supply chains. Manufacturers turn silicon wafers into solar cells and then assemble those into panels used in solar projects. American solar factories for the last decade have accused their Chinese rivals of dumping solar panels in the market, receiving unfair government subsidies and moving their manufacturing to other countries to dodge U. S. tariffs. The United States has two polysilicon factories. Hemlock Semiconductor, which operates a plant in Michigan, is a joint venture between Corning and Japan’s Shin-Etsu Handotai. Munich-based Wacker Chemie runs a factory in Tennessee. “Today’s decision encourages continued investment in U. S. capacity and supports long-term U. S. competitiveness,” a Corning spokesperson said. Wacker said it was reviewing the actions to fully understand their impact. “We appreciate the Administration’s continued engagement on the issue given the ramifications for semiconductor supply chain resilience, advanced computing infrastructure, and broader U. S. defense and security interests,” the company said in a statement. Domestic semiconductor manufacturing depends on solar because the solar industry’s larger demand for polysilicon helps support production of the material required for chips. The chip industry accounts for 2. 4% of global polysilicon demand, according to the Semiconductor Industry Association. U. S. solar manufacturing has expanded since Congress created tax incentives in 2022. Much of that growth, however, has been concentrated in panel assembly, leaving manufacturers dependent on imported wafers and cells, which require longer investment timelines.