Japan has expressed strong opposition to China’s imposition of new export restrictions on dichlorosilane (DCS), a chemical crucial for semiconductor production. The Japanese government is currently evaluating the potential repercussions for its domestic companies, which include major exporters like Shin-Etsu Chemical and Denal Silane. Under the new Chinese regulations, importers of Japanese DCS are required to provide cash deposits of up to 99.2%, a move Japan views as potentially damaging to its businesses.
The restrictions have been introduced by China following an anti-dumping investigation that concluded Japanese DCS exports adversely affected China’s local industry. Although the measures are described as provisional, a definitive ruling will be issued once the investigation is finalized. In response, Japan’s government has urged Beijing to ensure that these actions do not unfairly target Japanese companies and has indicated it may take appropriate countermeasures if necessary.
These latest developments occur against a backdrop of strained relations between China and Japan, exacerbated by Japan’s stance on Taiwan. China has also implemented various trade and export restrictions concerning Japanese enterprises, particularly those dealing with dual-use products that could have military applications.
Dichlorosilane plays a vital role in semiconductor manufacturing, where it is used to deposit ultra-thin silicon layers on computer chips. Given Japan’s position as a leading global supplier of ultrapure DCS, the new Chinese export restrictions could significantly impact the semiconductor supply chain.