US President Donald Trump signed a presidential proclamation on August 6 (Eastern Time), invoking Section 232 of the Trade Expansion Act of 1962 to impose a 15% tariff and set minimum import prices on imported “polysilicon and derivative products.” The new measures will officially take effect on December 4. Taiwan’s Ministry of Economic Affairs (MOEA) responded immediately, emphasizing that Taiwanese semiconductor manufacturers have been actively investing in the US and can seek tariff exemption quotas through the Taiwan-US Investment MOU mechanism, while the solar photovoltaic industry faces limited overall impact due to its minimal export exposure to the US market.
The MOEA explained that the US measures aim to reshape America’s domestic solar and semiconductor supply chains and reduce dependence on low-cost production capacity from China. According to statistics, Taiwan’s polysilicon-related product exports to the US amount to approximately US$320 million (about NT$10 billion), accounting for 25% of total global exports in this product category. Among these, silicon wafer exports to the US total US$250 million (about NT$8 billion), primarily supplying American semiconductor manufacturers.
Notably, Taiwan, along with specific trading partners including Japan, South Korea, and the European Union, will be subject to the 15% tariff rate without the additional stacking of Most-Favored-Nation (MFN) duties, maintaining relatively favorable competitive conditions under the new regime.
Addressing concerns about the impact on the semiconductor industry, the MOEA pointed out that Taiwanese semiconductor firms have been actively establishing a presence in the US to serve local customers. Under the Taiwan-US Investment MOU, companies investing in the US can obtain tariff exemption quotas equivalent to 2.5 times their future production capacity during the plant construction phase. After mass production commences, they can secure exemption quotas of 1.5 times capacity. Furthermore, raw materials required for plant construction or operations in the US, aside from those sourced from local American suppliers, can also seek import duty exemptions under the Taiwan-US Investment MOU, substantially reducing the impact of these measures.
Regarding the solar photovoltaic industry, the MOEA stated that Taiwan currently does not produce solar-grade silicon wafers. Products exported to the US are primarily solar cells and modules, with US-bound exports accounting for only about 1% of total industry output value, making it a predominantly domestic-demand-oriented industry. Therefore, the impact of these measures on Taiwan’s solar photovoltaic sector is limited.
Reactions among major domestic solar manufacturers have been mixed. United Renewable Energy believes that since the Section 232 national security investigation does not target any single country, Taiwanese solar products remain quite competitive in terms of quality on a level playing field. Currently, the US has a certain scale of solar module production capacity, but battery supply remains relatively insufficient. If policies further encourage domestic battery production, United Renewable Energy does not rule out evaluating an expansion of its US presence, extending from module manufacturing to battery production. United Renewable Energy has already announced a partnership with semiconductor materials firm Sino-American Silicon to jointly build a solar module plant in the US with an annual production capacity of 1GW.
TSEC Corporation Vice President Jiang Zhihao stated that while some impact is inevitable, the effect is manageable since everyone faces the same standard tariff rate. The company will proceed according to its established roadmap, focusing on developing niche products alongside standard offerings, including specialty applications and space applications. Additionally, TSEC will seek to purchase US-made polysilicon materials to save on tariffs when selling products into the US market. As for establishing manufacturing facilities in the US as a response, the company currently has no such plans.
The MOEA emphasized that it will continue to monitor the implementation details from the US side and assist Taiwanese companies in seeking tariff exemptions through the preferential mechanisms under the Taiwan-US Investment MOU. Concurrently, the government will continue to help companies diversify markets and enhance industrial competitiveness through overseas market expansion and industry support measures, including expanding into the Japanese and Southeast Asian markets, and providing guidance on developing N-type high-efficiency cells and building-integrated photovoltaics (BIPV) and other niche products, thereby strengthening the defensive resilience of Taiwan’s solar supply chain in the global market.
Market sources indicate that the US measures primarily target solar supply chain products, including solar-grade silicon wafers, solar cells, and modules, rather than semiconductor chips. However, since the final scope of application remains subject to the official tariff codes to be announced by the US side, the government will continue to closely track the progress of relevant legislation.
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