The silicon economy: polysilicon supply chains in times of geoeconomic transition 

The silicon economy: Europe must strengthen polysilicon supply chains amid geoeconomic transition 

The European Union’s energy and digital transitions are increasing the strategic importance of polysilicon, the essential material underpinning technologies ranging from solar panels and batteries to semiconductor chips. In a new HCSS policy brief, Ron Stoop and Irina Patrahau examine the geopolitical and industrial dynamics shaping Europe’s polysilicon supply chains and identify steps to strengthen their resilience. 

The brief finds that Europe has a relatively strong position in semiconductor-grade polysilicon production, but significant vulnerabilities remain. With the Net-Zero Industry Act’s ambition to onshore some of the EU’s solar PV manufacturing in the coming years, the demand for solar-grade polysilicon will significantly increase. Moreover, downstream manufacturing capacity is insufficient, creating dependence on Chinese technology and supply. At the same time, Europe’s entire existing semiconductor-polysilicon capacity is concentrated in a single company, making resilience particularly important in the semiconductor supply chain. 

“Europe’s strong polysilicon position risks decline without capacity growth matching global and domestic demand,” the authors warn. 

The authors recommend three complementary measures:  

• coordinate EU-wide polysilicon supply chains across semiconductors, solar photovoltaics and batteries;  

• mobilise EU financing to close supply-chain gaps and support sustainable production;  

• and develop a tailored policy framework for polysilicon and related midstream products that currently sit between the Critical Raw Materials Act and Net-Zero Industry Act. 

Patrahau and Stoop also stress that Europe cannot—and need not—onshore every production process. Cooperation with key non-Chinese partners will remain essential, while maintaining indispensable European capabilities can strengthen resilience in critical sectors. 

“The EU must act decisively to overcome dependencies, reduce exposure to geopolitical risks, and capitalize on the economic opportunities presented by the twin energy and digital transitions,” Stoop and Patrahau conclude.  

Their message to policymakers: strengthening polysilicon supply chains should be addressed now, alongside the broader industrial ambitions of the Chips Act and Net-Zero Industry Act. 

Authors: Ron Stoop and Irina Patrahau 

Contributors: Sophie Tinselboer 

The research was commissioned by RESiLICON and executed by The Hague Centre for Strategic Studies (HCSS). The conclusions and recommendations presented in this paper are the result of independent research. Responsibility for the content rests with the authors and the authors alone.