Japan has lodged a protest against China following Beijing’s decision to introduce new export restrictions on dichlorosilane (DCS), a chemical essential in semiconductor manufacturing. The Japanese government is currently evaluating the potential repercussions these restrictions could have on its companies, including significant players like Shin-Etsu Chemical and Denal Silane.
The new measures stipulate that Chinese importers must provide substantial cash deposits, reaching up to 99.2% for DCS imports from Japan. China has justified these provisional measures by citing an ongoing anti-dumping investigation, which, according to Beijing, revealed that Japanese exports of DCS have adversely affected its domestic industry. A conclusive decision on these restrictions will be made once the investigation concludes.
In response, Japan has urged China to ensure that these restrictions do not unjustly harm Japanese businesses. Tokyo has also indicated its readiness to take necessary actions should it find the measures detrimental. This development comes amidst a backdrop of increasingly strained relations between China and Japan, particularly over Japan’s stance regarding Taiwan. Adding to the tension, Beijing has imposed additional trade and export controls involving Japanese firms and products that might have dual-use, including military applications.
DCS plays a crucial role in semiconductor manufacturing, being used to form ultra-thin silicon layers and other materials on computer chips. Given Japan’s position as a leading global producer of ultrapure DCS, these new restrictions could have significant implications for the semiconductor supply chain worldwide.