Japan has expressed strong objections to China’s recent decision to impose stringent restrictions on the export of dichlorosilane (DCS), a critical chemical in semiconductor manufacturing. This move requires Chinese importers of DCS from Japan to make cash deposits as high as 99.2%. The restrictions are set to impact major Japanese exporters, including Shin-Etsu Chemical and Denal Silane, prompting Japan to evaluate the repercussions on its businesses.
China’s decision follows a preliminary anti-dumping investigation which concluded that the importation of Japanese DCS had adversely affected its domestic industry. The Chinese government has labeled these restrictions as provisional, with a final ruling expected after the completion of the investigation. In response, Japan’s government has called upon China to ensure that these measures do not inappropriately harm Japanese enterprises, indicating readiness to take necessary counteractions if required.
This development occurs amidst increasingly tense relations between China and Japan, particularly concerning Japan’s stance on Taiwan. In addition to the DCS restrictions, China has implemented various trade and export measures targeting Japanese companies, especially those dealing with dual-use products that might have military applications.
DCS is a vital component in the semiconductor production process, utilized to deposit ultra-thin layers of silicon and other materials on computer chips. Given that Japan is a leading global supplier of ultrapure DCS, these new restrictions pose a significant challenge to the semiconductor industry’s supply chain.