itif.org
China Plans to Dominate a Key
Semiconductor Material
ALEX RUBIN | SEPTEMBER 2025
Beijing has provided significant support to its domestic polysilicon industry in a drive to establish
Chinese firms as the dominant global suppliers of solar-grade polysilicon—and it wants its firms
to expand their share of semiconductor-grade polysilicon.
KEY TAKEAWAYS
Polysilicon is often described as one of the purest materials on Earth. It is used as the
substrate material for a range of products, most importantly chips and solar panels.
Beijing has provided significant support to its domestic polysilicon industry to establish
Chinese firms as the dominant global suppliers of solar-grade polysilicon and is seeking
to push its firms to expand their share of semiconductor-grade polysilicon.
Chinese overproduction of polysilicon and silicon carbide is causing the global price for
these materials to crater, undermining the short- and long-term financial viability of
leading firms in the United States and allied countries.
Forced labor has already been linked to China’s critical minerals sector, in particular rare
earth mining and refining, increasing the likelihood that forced labor is integrated into
China’s polysilicon supply chain.
The Commerce Department has launched a Section 232 investigation into polysilicon and
derivative products, providing a unique opportunity to ensure that critical infrastructure
supply chains do not become dependent on Chinese inputs.
The administration should prohibit imports of Chinese-origin or -linked polysilicon or
derivative products, and require products containing Chinese-origin or -linked polysilicon
to document that no forced labor was used in their production.
The departments of Commerce, Defense, and Treasury should support U.S.-based
expansion of polysilicon and silicon-carbide production capacity.
