South Korea's Ministry of Trade, Industry and Energy (MOTIE) has called on the United States to exempt South Korean companies from import restrictions on polysilicon and its derivatives, warning that tariffs could disrupt up to $2.8 billion in US photovoltaic investments.
On July 1, the US launched a Section 232 investigation into polysilicon imports under the US Trade Expansion Act of 1962 to assess potential national security risks posed by foreign polysilicon. Currently, approximately 80% of global polysilicon production capacity is concentrated in China, and prices have fallen significantly due to intense competition.
Berreuter Research data shows that the average price of polysilicon in China in August 2025 will be 44 RMB (US$5.42, excluding VAT), with n-type products around 45 RMB and p-type around 33 RMB. As of August 6, the spot price was approximately US$6.12 per kg.
The South Korean government emphasizes that bilateral trade between South Korea and the United States is mutually beneficial: South Korea imports approximately US$58 million in US-produced polysilicon annually and also supplies South Korean-produced polysilicon to US companies. The implementation of broad tariffs would disrupt key photovoltaic and semiconductor supply chains. South Korean companies are actively investing in US photovoltaic manufacturing, including Qcells' module complex in Georgia and OCI's cell plant in Texas. These projects are expected to create approximately 3,250 jobs. South Korea noted that trade restrictions could delay investment, increase costs, and threaten the growth of the US photovoltaic industry.
The ministry added that South Korean polysilicon companies maintain strict quality controls, are not involved in forced labor, and are helping to alleviate global supply concentration. In the semiconductor sector, US exports of high-purity polysilicon already generate a trade surplus, while imports from South Korea neither threaten US production capacity nor pose a national security risk.
MOTIE urged the US to remain flexible in applying Section 232 to maintain bilateral trade, ensure supply chain stability, and support investment in US new energy and semiconductor industries.
Meanwhile, China announced in January that it would review anti-dumping measures on imported solar-grade silicon from the US and South Korea, which could affect prices and trade patterns in the photovoltaic industry. Hemlock Semiconductor has received $325 million in government funding to expand polysilicon production and strengthen the domestic supply chain.
In July of this year, Japan's Tokuyama and OCI launched construction on a new polysilicon plant in Malaysia with an annual production capacity of 10,000 tons. Earlier this month, major Chinese polysilicon manufacturers proposed a $7 billion plan to retire one-third of their production capacity to alleviate oversupply and stabilize prices across the supply chain. However, analysts questioned its feasibility, citing factors including insufficient funding, inventory pressures, and resistance from manufacturers.
South Korea's Ministry of Trade, Industry and Energy (MOTIE) has called on the United States to exempt South Korean companies from import restrictions on polysilicon and its derivatives, warning that tariffs could disrupt up to $2.8 billion in US photovoltaic investments.
On July 1, the US launched a Section 232 investigation into polysilicon imports under the US Trade Expansion Act of 1962 to assess potential national security risks posed by foreign polysilicon. Currently, approximately 80% of global polysilicon production capacity is concentrated in China, and prices have fallen significantly due to intense competition.
Berreuter Research data shows that the average price of polysilicon in China in August 2025 will be 44 RMB (US$5.42, excluding VAT), with n-type products around 45 RMB and p-type around 33 RMB. As of August 6, the spot price was approximately US$6.12 per kg.
The South Korean government emphasizes that bilateral trade between South Korea and the United States is mutually beneficial: South Korea imports approximately US$58 million in US-produced polysilicon annually and also supplies South Korean-produced polysilicon to US companies. The implementation of broad tariffs would disrupt key photovoltaic and semiconductor supply chains. South Korean companies are actively investing in US photovoltaic manufacturing, including Qcells' module complex in Georgia and OCI's cell plant in Texas. These projects are expected to create approximately 3,250 jobs. South Korea noted that trade restrictions could delay investment, increase costs, and threaten the growth of the US photovoltaic industry.
The ministry added that South Korean polysilicon companies maintain strict quality controls, are not involved in forced labor, and are helping to alleviate global supply concentration. In the semiconductor sector, US exports of high-purity polysilicon already generate a trade surplus, while imports from South Korea neither threaten US production capacity nor pose a national security risk.
MOTIE urged the US to remain flexible in applying Section 232 to maintain bilateral trade, ensure supply chain stability, and support investment in US new energy and semiconductor industries.
Meanwhile, China announced in January that it would review anti-dumping measures on imported solar-grade silicon from the US and South Korea, which could affect prices and trade patterns in the photovoltaic industry. Hemlock Semiconductor has received $325 million in government funding to expand polysilicon production and strengthen the domestic supply chain.
In July of this year, Japan's Tokuyama and OCI launched construction on a new polysilicon plant in Malaysia with an annual production capacity of 10,000 tons. Earlier this month, major Chinese polysilicon manufacturers proposed a $7 billion plan to retire one-third of their production capacity to alleviate oversupply and stabilize prices across the supply chain. However, analysts questioned its feasibility, citing factors including insufficient funding, inventory pressures, and resistance from manufacturers.
