In a recent development, Japan has lodged a protest against China’s imposition of new export restrictions on dichlorosilane (DCS), a key chemical in semiconductor manufacturing. These restrictions, which mandate Chinese importers of Japanese DCS to make cash deposits as high as 99.2%, are being closely evaluated by Japan for their potential impact on its companies, including Shin-Etsu Chemical and Denal Silane.
China contends that these measures are temporary, citing an anti-dumping investigation that revealed Japanese DCS exports had a detrimental effect on Chinese industry. A conclusive resolution is anticipated upon the completion of this investigation. Meanwhile, Japan has called on China to ensure these measures do not unjustly harm Japanese businesses and has indicated readiness to respond appropriately if required.
This move is set against the backdrop of deteriorating China-Japan relations, partly due to Japan’s stance on Taiwan. The situation is further complicated by other trade and export restrictions that China has imposed on Japanese companies, especially concerning dual-use products with potential military applications.
Dichlorosilane plays a crucial role in semiconductor production, being integral to the creation of ultra-thin silicon layers on computer chips. Given Japan’s position as a leading global producer of ultrapure DCS, the new restrictions could have significant implications for the semiconductor supply chain.