Simcoa Forced Out of US as Trump Tariffs Hit Australian Silicon
Synopsis
Australia's only silicon producer says punitive import duties have made the US market unviable, raising concerns over critical minerals cooperation and supplies for chips and solar manufacturing.
Australia's sole silicon metal exporter, Simcoa, has ceased trading with the United States because of new trade restrictions imposed by the United States on products containing silicon metal, which make them less profitable to trade.
The WA firm stated the extra import charges imposed by the latest US trade policy made it impossible to compete. Simcoa mines quartz at Moora and smelts silicon at Wellesley, near Bunbury, and sells it as silicon metal for use in aluminium alloys, chemicals, silicones, semiconductors and solar applications.
US Trade Duties End Australian Silicon Exports
It is followed by the final anti-dumping/countervailing duty (AD/CVD) determination from the US Department of Commerce (DOC) issued in June 2026 following an investigation into imports of silicon metal from Australia.
The department found an anti-dumping duty margin of 6.16% and a countervailing duty rate of 32.57% for silicon metal from Simcoa to be imported into the United States.
Simcoa added that the duties caused the cost of selling to the United States to go up, making it commercially unfeasible to continue exports. Since then the company has pulled out of the market, but its production operations remain in Australia.
The move follows growing trade tensions between Canberra and Washington after the wider tariff tariffs the Trump administration announced on a host of imported goods put additional pressure on exporters that depend on the U.S. market.
Critical Mineral Supply Chain Faces New Pressure
Silicon metal is an essential industrial material used in the production of aluminium, silicones, semiconductors, batteries and solar panels. The USGS Mineral Commodity Summaries 2026 report, China continued to be the largest silicon producer in the world, with approximately 80% of the world's production.
Other countries that produce are Brazil, Norway, France, Bhutan, Russia and Australia, with Australia's production being relatively small as compared to other countries.
Silicon is an important input to advanced manufacturing and clean energy technologies and is associated with electronics, transport, construction and renewable energy industries, according to Geoscience Australia.
Simcoa is the property of Japan's Shin-Etsu Chemical Co., one of the world's largest manufacturers of silicon based materials. In the current fiscal year (31 March 2026), Shin-Etsu generated ¥2.62 trillion in revenue and ¥590.6 billion in net profit, its annual results show.
U.S. is among the top export destinations for Simcoa. With its withdrawal, Australia loses the only silicon metal producer on the American market at a time when both nations have been keeping critical minerals and advanced manufacturing supply chains in discussion.
Source: AFR
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
