Hemlock lays off workers and reduces polysilicon production

Hemlock Semiconductor, one of the leading producers of polysilicon, has announced significant changes in its operations, including the layoff of approximately 400 employees, a reduction in polysilicon output, and a delay in the expansion of its new facility in Tennessee. The company attributes these decisions to ongoing trade disputes, particularly those involving China, which have created a challenging business environment. Andrew Tometich, the president of Hemlock Semiconductor, explained that navigating the volatile polysilicon and solar industry is a tough but essential step for the company. He highlighted that unresolved trade tensions between the U.S., China, and Europe have played a major role in the decision. According to Tometich, the issue of U.S.-exported polysilicon being pirated or sold at unfairly low prices has led to a substantial drop in Chinese orders, which are crucial for the company’s business. China is currently investigating complaints from local polysilicon producers who claim that foreign suppliers have been selling high-purity materials at below-cost prices. This has caused a sharp decline in market prices and forced around 90% of domestic manufacturers to halt production. The situation has been further complicated by an oversupply in the market. Since 2008, over 100 new manufacturers—mostly based in China—have entered the polysilicon sector, leading to a surplus that has put pressure on pricing and profitability. Major players like Hemlock and Wacker have responded by upgrading their equipment and investing in new technologies to meet growing demand. However, despite these efforts, Hemlock now faces difficult choices. The layoffs will affect 300 workers at the Tennessee plant, which is still not operational, and 100 jobs will be lost at its main facility in Michigan. While the company plans to cut production, it has not yet provided specific figures. Hemlock had previously aimed to increase annual production to about 46,000 metric tons, starting from 12,300 MT in 2008. The Tennessee plant was originally scheduled to begin operations in 2013, but it has been put on hold due to uncertain market conditions and unresolved trade issues. In a statement, Tomdick emphasized that Hemlock Semiconductor, which has been in operation for 52 years, remains a leader in the industry. “As one of the key players, we are committed to weathering this period of extreme volatility and uncertainty,” he said. “Our goal is to emerge stronger and continue as a long-term, sustainable company.”

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