Japan has expressed its disapproval of China’s recent decision to tighten export rules on dichlorosilane (DCS), a chemical critical to semiconductor production. The Japanese government is currently evaluating how these new restrictions might impact its businesses. Under the new regulations, Chinese importers of DCS from Japan are required to provide cash deposits as high as 99.2%, impacting key Japanese suppliers like Shin-Etsu Chemical and Denal Silane.
According to China, these measures are temporary and stem from an anti-dumping investigation, which preliminarily concluded that Japanese DCS exports have adversely affected China’s domestic industry. A final determination on the matter will be made following the completion of this investigation. In response, Japan has urged China to ensure that these regulations do not disproportionately impact Japanese firms and has indicated it may take necessary steps to address any unfair treatment.
The imposition of these restrictions occurs amid escalating tensions between China and Japan, especially regarding Japan’s stance on Taiwan. In addition to the current measures, Beijing has also implemented other trade and export limitations involving Japanese companies, particularly concerning dual-use products that could have military applications.
DCS plays a crucial role in the manufacture of semiconductors, where it is used to create ultra-thin silicon layers and other materials on chips. With Japan being a leading global producer of ultrapure DCS, these restrictions hold substantial implications for the semiconductor supply chain worldwide.