Japan has voiced its objection to China’s newly imposed export restrictions on dichlorosilane (DCS), a crucial chemical in semiconductor production. The Japanese government is currently evaluating how these restrictions might impact its domestic companies. Under the new rules, Chinese importers of DCS from Japan are required to pay cash deposits that could reach as high as 99.2%. This policy directly affects Japanese firms like Shin-Etsu Chemical and Denal Silane.
According to China, the restrictions are temporary and stem from an anti-dumping investigation which concluded that Japanese exports of DCS have been detrimental to China’s local industry. A conclusive decision will be made once the investigation wraps up. Meanwhile, Japan is pressing China to ensure these measures do not unduly harm Japanese businesses and has stated that it is prepared to take necessary actions if required.
This development occurs against a backdrop of strained relations between China and Japan, particularly over Japan’s stance on Taiwan. China has recently implemented various trade and export controls targeting Japanese companies, including those producing dual-use goods that could have military applications.
DCS plays a vital role in the semiconductor manufacturing process, where it is used to form ultra-thin silicon and other material layers on computer chips. Given Japan’s significant role as a leading global producer of ultrapure DCS, these Chinese export restrictions are poised to have a considerable impact on the global semiconductor supply chain.
