Japan has raised objections to China’s new export restrictions on dichlorosilane (DCS), a critical chemical in semiconductor production. This move by China requires its importers to pay cash deposits of up to 99.2% on DCS imports from Japan. The restrictions put pressure on Japanese exporters such as Shin-Etsu Chemical and Denal Silane. Japan is currently evaluating how these restrictions might impact its businesses.
These measures are described by China as temporary, following an anti-dumping investigation that claims Japanese DCS exports have affected the domestic industry in China. The final decision on these restrictions will be made once the investigation is concluded. In the meantime, Japan’s government has called on China to ensure that these actions do not unfairly disadvantage Japanese companies and has hinted at possible countermeasures if necessary.
The backdrop to this trade tension is the deteriorating relationship between China and Japan, particularly regarding Japan’s stance on Taiwan. This has led to China implementing various trade and export controls on Japanese firms and products with dual-use potential, which could have military applications.
DCS plays a pivotal role in creating ultra-thin silicon layers on computer chips, a vital process in semiconductor manufacturing. As Japan is a leading global supplier of ultrapure DCS, the imposition of these export restrictions could have significant implications for the semiconductor supply chain, potentially affecting global production capacities.