The polycrystalline silicon tariffs proposed by the Trump administration are emerging as a key factor for Hanwha Solutions' solar business in the U.S. and its capital increase efforts. Hanwha Q CELLS, which sources polycrystalline silicon from overseas, may experience varying impacts depending on the scope of the tariffs. The semiconductor industry, another major consumer of polycrystalline silicon, is expected to be less affected.
According to industry sources, the Trump administration is preparing to impose a 15% tariff on polycrystalline silicon imported into the U.S. This material is essential for producing solar cell wafers and is also used in semiconductor silicon wafer production. The U.S. is reportedly considering this measure to protect its solar industry and to address competition with China over AI and semiconductor supply chains.
Industry analysts suggest that if tariffs are focused on Chinese polycrystalline silicon, Hanwha Q CELLS could benefit. The company has established a non-China supply chain by sourcing polycrystalline silicon from Malaysia and processing it into ingots, wafers, cells, and modules at its facility in Cartersville, Georgia. If the price competitiveness of products using Chinese polycrystalline silicon diminishes, Hanwha Q CELLS' position in the U.S. market could strengthen.
Improved price competitiveness and profitability for Hanwha Q CELLS could enhance the investment effectiveness of funds raised through its capital increase. Hanwha Solutions aimed to raise 2.4 trillion won for investments in its U.S. solar business and to improve its financial structure, but the actual amount raised was only 1.1713 trillion won, about half of the initial target.
However, if the tariffs are not limited to Chinese products and also apply to imports from Malaysia, the situation could change. Since polycrystalline silicon is a key raw material for solar cells, Hanwha Q CELLS would have to bear the increased costs of sourcing materials.
An industry insider stated, "If tariffs are imposed only on Chinese products, Hanwha Solutions could expect a windfall. Ultimately, we need to see the specific details regarding the tariff targets and origin criteria to accurately assess the impact."
The domestic semiconductor industry, which utilizes polycrystalline silicon as a basic material, appears to be avoiding significant repercussions. This is largely because the share of silicon wafers, a key material, in the manufacturing costs of Samsung Electronics and SK Hynix is minimal. According to their business reports, Samsung's annual wafer purchasing amount in its semiconductor (DS) division was 2.1625 trillion won, accounting for 12.4% of total raw material purchases last year. SK Hynix spent even less, at 1.0242 trillion won (7%).
Additionally, both companies have proactively established local production bases to mitigate the impact of potential tariffs. The confirmed investment scale for Samsung's foundry in Taylor, Texas, and SK Hynix's advanced packaging facility in West Lafayette, Indiana, exceeds $50 billion (approximately 70 trillion won).
Professor Lee Jong-hwan of Sangmyung University stated, "While South Korea has a high dependency on overseas sources for wafer materials, the cost share in semiconductor finished product manufacturing is low, and with local production bases secured in the U.S., the tariff risk can be sufficiently mitigated."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.