Wacker Chemie Shares Surge on Report of Potential US Polysilicon Tariffs

Shares in Wacker Chemie AG (ETR:WCHG) surged on Wednesday after a Reuters report said the U.S. administration is considering new trade measures to protect domestic producers of polysilicon, a critical material for the solar and semiconductor industries.

Details of the Proposed Measures

According to the Reuters report, the U.S. is preparing to introduce a minimum import price and tariffs on polysilicon and related products. The move is reportedly part of a national security investigation aimed at shielding the domestic industry from Chinese competition and strengthening U.S. supply chains for solar panels and microchips.

The potential measures, which could be announced later this month, would combine a price floor with tariffs on imported polysilicon and its derivatives. The administration is also said to be weighing how to offset higher costs for companies investing in U.S.-based wafer and solar cell production.

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Market Reaction and Company Impact

Following the news, Wacker Chemie's stock jumped 5.7% to €95.60, its highest level since July 15. The German chemical giant is seen as a primary beneficiary of the potential trade actions because it operates a major polysilicon production facility in Tennessee.

In a statement cited by Reuters, Wacker emphasized the strategic importance of the material. The company noted that polysilicon is "indispensable" to manufacturing in both the semiconductor and solar sectors and that "without polysilicon, the next steps of the value chain... are not possible."