Japan is challenging China’s recent move to enforce new export restrictions on dichlorosilane (DCS), a chemical integral to semiconductor manufacturing. The Japanese government is currently evaluating how these restrictions could impact its companies, particularly as they require Chinese importers to place cash deposits up to 99.2% for DCS imported from Japan. This development affects Japanese firms including Shin-Etsu Chemical and Denal Silane.
China has labeled these measures as provisional, citing an anti-dumping investigation that claims Japanese DCS exports have negatively affected China’s domestic industry. A definitive decision will follow upon the investigation’s conclusion. In response, Japan’s government has called on China to ensure that these measures do not unjustly harm Japanese businesses, warning that it might resort to suitable actions if the situation demands.
The timing of these restrictions coincides with growing tension between China and Japan, particularly over Japan’s stance on Taiwan. This is part of a broader pattern where China has implemented other trade and export limitations involving Japanese companies and products that can serve both civilian and military purposes.
DCS plays a crucial role in the semiconductor manufacturing process, specifically in creating ultra-thin layers of silicon and other materials on computer chips. Given Japan’s status as a leading global producer of ultrapure DCS, the restrictions carry significant implications for the semiconductor supply chain.
