China’s recent decision to impose stringent export restrictions on dichlorosilane (DCS), a critical chemical used in the production of semiconductors, has sparked a protest from Japan. The Japanese government is currently evaluating the potential repercussions these measures could have on its domestic companies. Under the new regulations, Chinese importers of DCS from Japan are required to place cash deposits reaching as high as 99.2%. This policy impacts Japanese exporters such as Shin-Etsu Chemical and Denal Silane.
The Chinese authorities have described these measures as provisional, citing an anti-dumping investigation that concluded Japanese DCS exports have negatively impacted China’s local industry. The final decision on this matter will be made once the investigation is concluded. In response, Japan has called on China to ensure that these restrictions do not unjustly harm Japanese businesses, indicating that it is prepared to take further action if necessary.
This development occurs against a backdrop of deteriorating relations between China and Japan, particularly over Japan’s stance on Taiwan. In addition to the DCS restrictions, China has implemented other trade and export limitations affecting Japanese firms, especially those involving dual-use products with potential military applications.
Dichlorosilane plays a vital role in semiconductor manufacturing, as it is used to form ultra-thin layers of silicon and other materials on computer chips. Given Japan’s status as a leading global producer of ultrapure DCS, these newly imposed restrictions are significant, posing potential challenges to the semiconductor supply chain.
