U.S. Polysilicon Tariff Talk Sends Corning Stock Higher

Overview

• Corning shares jumped on Friday after Reuters reported that U.S. officials are weighing tariffs and a minimum import price on polysilicon and related products, a policy decision that sources say could come soon.
• The rally builds on Corning’s strong Q2, when revenue rose to $4.74 billion and EPS beat estimates at $0.78, driven in part by a 32% year‑over‑year gain in Optical Communications and new optical‑connectivity deals with Amazon and Nvidia.
• Corning owns roughly an 80% stake in Hemlock Semiconductor, which runs a Michigan polysilicon plant and recently finished a $375 million next‑generation finishing facility that aims to produce semiconductor‑grade purity.
• Policy support for imports, plus a 2024 Commerce Department pledge of up to $325 million under the CHIPS Act for Hemlock, would materially improve the price competitiveness of U.S. polysilicon against China’s dominant capacity.
• Near‑term risks include the timing of factory ramps and a heavy capex program to add about $2 billion of capacity, plus elevated valuation multiples that leave shares sensitive to execution and the pending trade decision.