China Plans to Dominate a Key Semiconductor Material

This report examines China’s bid to control the global polysilicon supply chain—a material vital for semiconductors and solar panels. Massive subsidies, cheap energy, and strategic land policies have fueled Chinese overproduction, pushing prices far below market rates and squeezing U.S. and partner firms. The analysis also flags forced labor risks in Xinjiang-linked supply chains and highlights how unchecked dominance could undermine CHIPS Act gains and defense supply resilience. Policy recommendations include banning Chinese polysilicon imports tied to forced labor, improving traceability, and supporting domestic production.