The US is considering a price floor and tariffs on polysilicon to shield domestic producers, a move that could reshape solar and semiconductor supply chains amid rising Protectionist measures.

Domestic solar manufacturing has expanded since 2022 incentives, but much of the growth is in panel assembly, leaving wafers and cells reliant on imports and long-building investment timelines.

Hemlock Semiconductor in Michigan and Wacker in Tennessee symbolize the stakes of domestic polysilicon, highlighting a narrowing base of U.S. producers.

Experts warn that broad bans would be costly, hard to enforce, and could harm the global ecosystem and consumer interests.

Analysts warn the measures could raise costs for US cloud providers, slow AI infrastructure, and fragment or disrupt global supply chains, with potential political and economic fallout.

Enforcing a price floor could be undermined by transshipment and mislabeling, demanding stringent documentation and robust oversight.

The plan is not finalized and could evolve, according to unnamed sources familiar with the discussions.

China has warned against such restrictions, urging dialogue and signaling possible countermeasures in response to perceived protectionism.

The policy sits within a broader push to expand protective tariffs across multiple sectors, balancing domestic support with higher prices for critical technologies.

Investigations into drones, industrial robots, semiconductors, pharmaceuticals, critical minerals and wind turbines underscore a broader shift in the US tariff regime.

Industry groups caution tariffs could raise solar and consumer electronics costs, potentially reducing demand and project viability.

China criticized the probe, urging the US to resolve concerns through dialogue and to halt Section 232 measures.