US Announces 15% Tariff on Polysilicon; Taiwan Eyes Exemptions

The United States will implement a 15% tariff on imported polysilicon and its derivative products starting December 4, 2026. This measure, enacted under Section 232 of the Trade Expansion Act of 1962, aims to bolster U.S. national security by addressing the significant decrease in domestic polysilicon production capacity.

The tariffs will be accompanied by a minimum import price mechanism. Polysilicon imports priced below $21/KG, ingots and wafers below $100/KG, solar cells below $0.22/W, and solar modules below $0.38/W will be subject to additional tariffs to meet these minimums. The U.S. Department of Commerce stated that trading partners with agreements offering equivalent import adjustment measures may have their minimum import prices and tariffs adjusted.

Taiwan's government, through its Executive Yuan's Taiwan-U.S. Economic and Trade Working Group, has assessed the impact. The solar industry, largely focused on domestic demand with only 1% export to the U.S., is expected to experience limited effects. However, Taiwanese semiconductor polysilicon wafer exporters, who supply U.S. chipmakers with approximately $252.1 million worth of products annually, could be impacted.

These semiconductor exporters may leverage the existing Taiwan-U.S. Investment Cooperation Memorandum of Understanding (MOU). This agreement allows companies investing in the U.S. to benefit from duty-free quotas and exemptions on raw materials and equipment. The government will assist these companies in negotiating tariff exemptions and preferential treatment with U.S. authorities to maintain their competitive edge. For the solar sector, exports to the U.S. primarily consist of solar cell components and modules, valued at $33.5 million, representing a small fraction of Taiwan's overall solar industry output.