Taiwanese solar manufacturers yesterday said that new US import tariffs on silicon and related products would have a limited impact.
The comments came after the White House on Thursday imposed a series of price floors and a 15 percent tariff on products made from polysilicon, the raw material used in semiconductors and solar panels that is primarily produced by China.
US President Donald Trump’s decision 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.
Photo: AP
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 past decade have accused their Chinese rivals of dumping solar panels in the market, receiving unfair Chinese government subsidies and moving their manufacturing to other countries to dodge US tariffs.
For products from Taiwan, Japan, South Korea, Switzerland, Liechtenstein and EU member states, the combined rate of the new Section 232 tariff and the regular US customs duty would be capped at 15 percent.
In addition to polysilicon, products to be affected by the new measures also include polysilicon ingots, wafers, solar cells and solar modules.
TSEC Corp (元晶), a leading Taiwanese solar cell and module manufacturer, said Taiwanese products would face more favorable tariff treatment than those from major competitors such as China and several Southeast Asian countries, TSEC spokesman Henry Chiang (江郅豪) said.
US polysilicon production could not meet domestic demand, meaning American manufacturers would continue to rely on imports, Chiang said.
The measures were likely to raise costs in the US market without significantly changing the industry’s competitive landscape, he said.
Another Taiwanese solar cell manufacturer, United Renewable Energy Co (UREC, 聯合再生), said the tariffs were aimed at reducing US dependence on imports and improving domestic production.
UREC said it hopes Washington would offer preferential treatment to foreign companies that had invested or pledged to invest in the US.
As the US government promotes domestic manufacturing, UREC had not ruled out expanding its investment and production capacity in the US, while maintaining its manufacturing base in Taiwan, the firm said.
Meanwhile, the Taiwan Photovoltaic Industry Association (台灣光電產業協會) said that US efforts to reduce reliance on Chinese imports could create opportunities for American manufacturers to cooperate with Taiwanese companies through technology licensing or contract manufacturing.
The measures could accelerate the development of closer industrial partnerships between Taiwan and the US, the association said.
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