US Launches 232 Probe on Polysilicon Security

PVTIME – The US Department of Commerce has launched a Section 232 national security investigation into polysilicon.

On 14 July, the Bureau of Industry and Security (BIS) began the inquiry to evaluate the potential impact of imports of polysilicon and its derivatives on national security. The department is seeking detailed insights, data and analysis from industry players, experts and other stakeholders in several key areas.

Firstly, the department aims to map the fundamentals of supply and demand in the US market. This includes current and future demand projections for polysilicon and its derivatives, as well as an assessment of how well domestic production capacity can meet these demands. This step is designed to assess the extent to which the U.S. relies on imports.

Furthermore, the investigation will examine the role of foreign supply chains, particularly those of major exporting nations, in meeting US demand, as well as the risks associated with heavy reliance on a small number of suppliers. This directly addresses vulnerabilities stemming from concentrated supply chains.

Investigators will focus on how foreign government subsidies, predatory trade practices and state-driven excess capacity are undermining the competitiveness of America’s polysilicon sector. They will also seek to quantify the economic damage caused by artificially low prices resulting from such unfair practices.

Geopolitical risks are also high on the agenda. The inquiry will examine whether foreign nations could weaponise their control over polysilicon supplies by using export restrictions to advance strategic goals.

Finally, the investigation will consider the feasibility of increasing domestic production to reduce dependence on imports. It will also evaluate the effectiveness of current trade policies and consider whether additional measures, such as tariffs or quotas, are required to protect national security.