The US has initiated a national security review into polysilicon imports due to overreliance on the foreign supply chain
It targets unfair trade practices by foreign suppliers and state-backed overproduction
Findings of this investigation may trigger tariffs or restrictions on imported polysilicon, driving up prices in the ultimate analysis
The US Department of Commerce (DOC) has launched a Section 232 investigation under the Trade Expansion Act of 1962 into imported polysilicon, a key solar and semiconductor material, citing national security concerns.
The investigation was initiated on July 1, 2025, by the Bureau of Industry and Security. It seeks to determine the effect on national security of imports of polysilicon and derivatives and ascertain the economic impact of artificially suppressed prices of the material due to foreign unfair trade practices and ‘state-sponsored overproduction’.
Additionally, it aims to understand the potential for export restrictions by foreign nations, including the ability of foreign nations to ‘weaponize their control’ over supplies of polysilicon and its derivatives.
Through the investigation, the DOC also aims to collect information on the current and projected demand for polysilicon and its derivatives, domestic capacity to meet this demand, and the role of foreign supply chains, particularly major exporters, in meeting US demand.
If the investigation concludes that polysilicon imports pose a threat to US national security, it may lead to higher tariffs on imports or result in import restrictions.
The notice is scheduled to be published officially on the Federal Register website on July 16, 2025.
While the DOC does not name any particular country, China is the world’s largest supplier of polysilicon.
Chinese polysilicon imports are already subject to Section 301 tariffs that were raised to 50% since January 1, 2025 (see US Raises Section 301 Tariffs On Chinese Polysilicon, Brings In Wafers Too).
The US has also banned any products produced in China’s Xinjiang region from entering its borders under the Uyghur Forced Labor Prevention Act, including polysilicon (see UFLPA Comes Into Force In The US).
Meanwhile, the US does not have enough polysilicon capacity of its own to feed the growing demand from the solar PV manufacturing space.
The new investigation follows the passing of the One Big Beautiful Bill Act (OBBBA), which has tightened solar project timelines to claim tax credits. Recently, Wood Mackenzie slashed its 10-year solar outlook for the country by 17% in the wake of the OBBBA (see Wood Mackenzie Cuts 10-Year US Solar Outlook By 17%).
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