Why is Wacker Chemie's Tennessee polysilicon plant at risk of closure despite U.S. efforts to secure the semiconductor supply chain?

Wacker Chemie's Charleston, Tennessee facility—employing about 600 workers—is at risk of closure because the Trump administration's August 6 trade measures, which include a price floor and tariffs on imported polysilicon ingots, wafers, cells, and solar panels, drove away its two remaining customers; the policy treats foreign-made products using U.S. or Chinese polysilicon identically, failing to incentivize purchases of more expensive U.S.-made polysilicon (which can cost four times more), and Wacker stated the proclamation 'does not, as it reads now, effectively support the use of U.S. made polysilicon.'

What is the core flaw in the Trump administration's polysilicon trade policy that undermines its goal of protecting domestic semiconductor supply chains?

The core flaw is that the policy applies tariffs and price floors equally to all imported solar and semiconductor components regardless of where the polysilicon inside them was produced—so products made abroad using U.S. polysilicon receive no preferential treatment over those using cheaper Chinese polysilicon—thus failing to create demand for costly U.S.-made polysilicon and leaving domestic producers like Wacker at a competitive disadvantage, while benefiting foreign rivals with China ties.

Trump's Bid to Shield Chip Supply Chain Could Backfire in Tennessee

Sep 4, 2026

Wacker Chemie risks closing its Tennessee polysilicon plant after new U.S. trade policies drove away customers, highlighting challenges in protecting domestic semiconductor and solar material supply chains.

reuters

2026-09-04

Trump's Bid to Shield Chip Supply Chain Could Backfire in Tennessee

Trump's Bid to Shield Chip Supply Chain Could Backfire in Tennessee

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