The US has signed a presidential proclamation imposing a 15% tariff on polysilicon and derivative products, effective 4 December. Taiwan's Ministry of Economic Affairs explained that an exemption may be secured by leveraging the US-Taiwan investment MOU.
The US has signed a presidential proclamation imposing an additional 15% tariff on polysilicon and derivative products, effective 4 December local time. The proclamation is based on Section 232 of the Trade Expansion Act of 1962 and is structured to exclude certain trading partners from the scope of the measure.
Taiwan's Ministry of Economic Affairs said the tariff could damage the solar power supply chain, but explained that the framework under the US-Taiwan Investment Cooperation Memorandum of Understanding (MOU) could allow companies to secure tariff-exemption allocations of up to 2.5 times the standard level during the plant construction period and 1.5 times during the mass-production stage. The measures also include preferential treatment for local sourcing and duty-exemption applications.
According to statistics from Taiwan's Ministry of Economic Affairs, exports of polysilicon-related products to the US total approximately $320 million, accounting for about 25% of the global total. Of this amount, $250 million consists of silicon wafer products, which are supplied mainly to US semiconductor manufacturers, while the proportion destined for the solar power supply chain is considered limited.
To contain market disruption, attention is focused on efforts to secure tariff exemptions by using the US-Taiwan investment MOU. Taiwan accounts for a portion of exports of silicon wafers, cells and modules for solar power generation, but the measure is not expected to apply directly to semiconductor chips, the ministry clarified. The government said it would assess future announcements and continue supporting the industry.