American Polysilicon Manufacturers Praise Phase 1 of U.S.-China Trade Deal
January 16, 2020 | GlobeNewswireEstimated reading time: 2 minutes
The United States’ three remaining manufacturers of polysilicon have thanked President Trump and praised U.S. negotiators for securing the Chinese commitment to purchase U.S. polysilicon in the Phase 1 U.S.-China trade deal, while noting any benefit for U.S. manufacturers and workers will depend on how China implements the agreement.
Polysilicon is the fundamental building block for the semiconductor and solar industries, used to make ingots and wafers for solar cells and the integrated circuits that power everything from smartphones to autonomous vehicles and electronics. The U.S. polysilicon industry represents over $10 billion in capital investment and employs thousands in high-skilled, high-wage jobs. The inclusion of polysilicon in the Phase 1 trade deal reflects recognition by U.S. government officials of the U.S. polysilicon industry’s strategic significance to American defense and energy industries and future manufacturing innovation.
“We hope this agreement will result in a more level playing field for this important building block to the solar and electronics industries,” said Mark Bassett, chairman and CEO of Michigan-based Hemlock Semiconductor Operations (HSC).“Maintaining and expanding U.S. production capacity is vital to supporting high-wage American manufacturing jobs based on high-tech innovation.”
In 2014, China closed its market to U.S. polysilicon by imposing tariffs on imports of U.S-made solar-grade polysilicon. China has heavily subsidized its own polysilicon producers since imposing the tariffs on U.S. producers and has focused on concentrating demand for polysilicon in China. This industrial policy has created massive overcapacity in China, burdening the global industry and worsening conditions for the U.S. polysilicon industry.
“Regaining meaningful market access to China, which represents over 92 percent of global polysilicon demand, is essential to the U.S. polysilicon industry,” said Wacker Polysilicon Vice President Mary Beth Hudson, who is responsible for the company’s polysilicon plant in Tennessee. “This Phase 1 agreement represents an important first step in resuming exports and meeting the increasing demand of Chinese customers for highest quality polysilicon.”
The existing Chinese tariffs forced REC Silicon last July to shutter its $1.7 billion polysilicon plant in Moses Lake, Wash., and lay off around 450 workers. HSC had to abandon its investment of over $1 billion in a new, state-of-the-art polysilicon plant in Tennessee in 2014 after the Chinese tariffs took effect. A SunEdison polysilicon plant in Pasadena, Texas closed in 2015 and was purchased by a Chinese company, allowing China access to SunEdison’s patented technology. REC Silicon still operates a plant in Butte, Mont., while HSC has operations in Hemlock, Mich., and Wacker Polysilicon has a plant in Charleston, Tenn.
“It is really positive that the U.S. government has recognized the importance of the U.S. polysilicon industry. Being locked out of the global market for polysilicon for the last several years has cost the U.S. high-paying jobs and billions of dollars in investment,” said Tore Torvund, CEO & President of REC Silicon.
“While we hope that this partial restoration of access to China’s polysilicon market will improve the outlook for U.S. polysilicon producers, it’s imperative that the U.S. continues to focus on developing and strengthening critical links in the solar value and supply chains, providing a market for our polysilicon and other U.S. solar manufacturers here in the vibrant domestic U.S. solar market,” he added.
Suggested Items
Zentech’s Board of Directors Announces the Return of Matt Turpin as President and CEO
04/22/2024 | Zentech ManufacturingTurpin draws upon over 35 years of experience in the electronics industry and has an 18-year history with Zentech. He previously served as President and CEO from 2006 to 2019 after which time he has remained active in the EMS industry as an advisor to Zentech and other industry organizations.
Aaron Woolf, Dylan Peterson Join SIA Team
04/22/2024 | SIAThe Semiconductor Industry Association (SIA) announced Aaron Woolf and Dylan Peterson have joined the SIA team. Woolf will serve as director of global policy for economic security and Peterson will be a communications associate. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.
It’s Only Common Sense: OCCAM—the Time Is Now
04/22/2024 | Dan Beaulieu -- Column: It's Only Common SenseOne of my favorite books is a little tome called Who Moved My Cheese? Even those of you who don’t spend a lot of time reading books have at least heard of it and know that it refers to people, especially in business, who are so stuck in their ways that they get upset when something changes. In our business, we know this kind of thinking is especially true. In fact, it always makes me laugh when one of my innovative friends finds a new way to do something and is afraid that someone will steal his idea. I always tell him that no one in our business, especially a PCB engineer, has ever thought about someone else’s innovative idea enough to steal it.
Digitalisation and ESG
04/19/2024 | Marina Hornasek-Metzl, AT&SDigitalisation and ESG are prominent and high-priority topics in the global business community. The first focuses on applying technology throughout the value chain to produce faster, smarter, and more desirable business outcomes. The latter emphasises the broader value a business is expected to create for its stakeholders from an environmental, social, and governance perspective.
Real Time with... IPC APEX EXPO 2024: Looking Back, Looking Forward With IEC
04/19/2024 | Real Time with...IPC APEX EXPOIEC came to the RTW booth and discussed both the legacy of IEC's past and the vision for its future. Industry veteran Bruno Ferri highlighted his quarter-century tenure in the industry and with IEC since its founding. He still exhibits boundless enthusiasm for the industry. Brando Stone, a young professional and a future face of IEC, talked about IEC's plans going forward and his experience at this year's IPC APEX EXPO.