Japan has lodged a protest against China’s recent decision to impose strict new export restrictions on dichlorosilane (DCS), a crucial chemical in semiconductor production. The Japanese government is currently assessing the potential repercussions these measures could have on its domestic companies. As per China’s new rules, Chinese importers of DCS from Japan are now required to provide cash deposits as high as 99.2%. This change impacts major Japanese exporters, including Shin-Etsu Chemical and Denal Silane.
The restrictions, according to China, are provisional and were enacted following an anti-dumping investigation that suggested Japanese exports of DCS were damaging China’s local industry. A conclusive decision will be made after the completion of the investigation. In response, Japan’s government has called on China to ensure these measures do not unjustly harm Japanese businesses and has indicated its readiness to take necessary actions if required.
This development occurs amid deteriorating relations between China and Japan, partly due to Japan’s stance on Taiwan. Furthermore, Beijing has introduced other trade and export limitations affecting Japanese companies, particularly those dealing with dual-use products that could have military applications.
Dichlorosilane plays a pivotal role in the semiconductor manufacturing process, where it is used to form ultra-thin layers of silicon and other materials on computer chips. Given Japan’s significant role as a global supplier of ultrapure DCS, the new restrictions could have important implications for the semiconductor supply chain worldwide.