With President Trump resuming trade talks with China this week, Michigan’s polysilicon manufacturers are asking for one thing: an open market.
Since 2013, China has had a 57% tariff on US polysilicon exports.
Polysilicon is used in everything from solar panels, to smart phones, and smart cars.
Brooke Beebe is with Michigan-based Hemlock Semiconductor, one of the largest polysilicon manufacturers in the US.
“Polysilicon is the fundamental raw material on which semiconductors are built. All electronics have semiconductors,” she said. “We’re one of very few companies in the world that produces polysilicon of the quality needed for the electronics industry so we do see ourselves fundamental for the US economy and future growth.”
Beebe said she hopes Trump’s negotiations will give them open access on the Chinese market. She says the tariffs have cut exports to China by roughly 90%.
“Moving forward we are seeking open market access on the Chinese market,” she said. “We would like to see those tariffs that have been on the polysilicon industry removed.”
In 2018 the Trump Administration imposed a 30% tariff on solar equipment manufactured outside the US. The move was expected to harm the solar industry as a whole, but bring some benefits to US solar manufacturers.
Beebe said Hemlock Semiconductor is too far upstream in the solar manufacturing supply chain to see an impact either way.
She said if negotiations don’t work - the industry may need some help.
“In terms of protecting this industry we would love to see efforts by the US Government to get us through this time until we gain open access to China,” she said.
Congressman Dan Kildee visited Hemlock Semiconductor today. He said if the trade talks don’t work, the government should look at tax credits, or even subsidies, to keep the industry afloat.
“Because the future is going to be heavily reliant on this,” Kildee said. “Even our own energy production in this country is going to move much more towards solar. So if we don’t have the ability to produce our own material we’re basically giving that industry away to, in this case, China.”
Beebe, with Hemlock Semiconductor, said the company isn’t seeking subsidies.
But she said if trade talks fail, she would be open to some tax credits that favor the US solar and polysilicon industries.