Japan has lodged a protest against China’s decision to enforce new export restrictions on dichlorosilane (DCS), a crucial chemical in semiconductor manufacturing. This move has prompted Japan to assess how these measures might affect its companies. Under the new restrictions, Chinese importers of DCS from Japan are now required to provide cash deposits amounting to as much as 99.2%. Notable Japanese exporters impacted by these rules include Shin-Etsu Chemical and Denal Silane.
China has labeled these restrictions as provisional, having introduced them following an anti-dumping investigation that concluded Japanese DCS exports were detrimental to China’s domestic industry. The final decision regarding these measures will be made once the investigation is fully completed. In response, Japan’s government has urged China to ensure that these restrictions do not unfairly harm Japanese businesses, and it has expressed readiness to take appropriate measures if required.
The imposition of these restrictions occurs amidst escalating tensions between China and Japan, particularly concerning Japan’s stance on Taiwan. In addition to the DCS restrictions, China has initiated other trade and export limitations affecting Japanese companies, particularly those involving dual-use products with possible military applications.
Dichlorosilane plays a pivotal role in semiconductor manufacturing, as it is used to create extremely thin silicon layers and other materials on computer chips. Given Japan’s status as a leading global producer of ultrapure DCS, these new export restrictions hold significant implications for the semiconductor supply chain.