Amid the bout of newfound love for Japan from President Donald Trump's administration, the U.S. government is mulling introducing tariffs on polysilicon and derivative products used in chips and solar panels, according to a report from Reuters. The report further states that the government may set a price floor for these imports while allowing investors in wafer and solar-cell production to obtain concessions to offset costs.
So, why did Corning (GLW) shares rally on this news? Well, Hemlock Semiconductor (HSC) — a joint venture (JV) between the company and Japan's Shin-Etsu Handotai — operates a polysilicon factory in Michigan. Notably, Corning holds a roughly 80% stake in the JV while the rest lies with Shin-Etsu Handotai.
