HS Code:
Silicon, classified under HS Code 2804, encompasses silicon in its various forms, including metallurgical grade silicon, silicon dioxide, and other silicon compounds used primarily in the semiconductor industry, solar panel production, and as a key alloying element in aluminum production. Silicon is a critical material in modern technology, forming the backbone of electronic devices and renewable energy solutions. Global trade in silicon is driven by demand for high-purity silicon in electronics and photovoltaic cells, with significant production tied to energy-intensive processes.
Total Trade Volume
USD 10.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
25% (imposed by certain developing countries on imports to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU internal trade or USMCA)
Rising demand for silicon in solar energy applications
Increased production and trade volume as countries invest in renewable energy to meet climate goals, with a projected growth of 8% annually in solar-grade silicon trade
2021-2023
Supply chain disruptions due to geopolitical tensions
Price volatility and trade rerouting as countries seek alternative suppliers amid US-China trade tensions and restrictions on technology transfers
2020-2022
Technological advancements in silicon purification
Reduced production costs for high-purity silicon, making it more accessible for semiconductor and solar industries, boosting trade in value-added silicon products
2019-2023
The United States introduced additional tariffs of 15% on silicon imports from China, citing unfair trade practices and overcapacity in the Chinese market.
March 2023
Expected to increase costs for US solar panel manufacturers, potentially slowing renewable energy projects, while benefiting alternative suppliers like Norway and Brazil.
The European Union's Green Deal initiatives have accelerated investments in solar energy, leading to a surge in demand for silicon, with imports rising by 12% in 2022.
January 2023
Strengthens market position for silicon exporters to the EU, while putting pressure on global supply chains to meet demand.
China announced plans to increase metallurgical-grade silicon production by 20% over the next five years to secure dominance in the global market.
October 2022
Likely to intensify global competition, potentially leading to price drops but also raising concerns about overproduction and environmental impact.