Japan has lodged a protest against China’s new export restrictions on dichlorosilane (DCS), a critical chemical in semiconductor manufacturing, as it evaluates the potential repercussions for its companies. The restrictions mandate that Chinese importers of Japanese DCS must provide cash deposits of up to 99.2%. This measure directly impacts Japanese firms such as Shin-Etsu Chemical and Denal Silane.
China has labeled these restrictions as provisional, following an anti-dumping investigation that concluded Japanese DCS exports had adversely affected China’s domestic industry. The final verdict will be determined upon the investigation’s completion. In response, Japan’s government has called on China to ensure that these measures do not unjustly harm Japanese businesses, and has stated its readiness to take necessary actions if required.
The introduction of these restrictions occurs amidst deteriorating relations between China and Japan, partly due to Japan’s stance on Taiwan. Furthermore, Beijing has imposed additional trade and export restrictions targeting Japanese companies and products that might have dual-use or military applications.
Dichlorosilane is instrumental in semiconductor manufacturing, used to produce ultra-thin silicon layers on computer chips. With Japan being a leading global producer of ultrapure DCS, these new export restrictions carry significant implications for the semiconductor supply chain.