Japan has expressed concern over China’s recent decision to implement new export restrictions on dichlorosilane (DCS), a crucial chemical in semiconductor production. The Japanese government is currently evaluating the potential effects these measures could have on its businesses, particularly those like Shin-Etsu Chemical and Denal Silane, which are significant exporters to China.
The new regulations demand that Chinese importers of DCS from Japan provide cash deposits of up to 99.2%. China’s rationale for these restrictions is based on a provisional anti-dumping investigation that indicated Japanese DCS exports have negatively impacted China’s domestic market. The outcome of this investigation will determine whether these measures become permanent.
In response, Japan has urged China to ensure that these restrictions do not unjustly affect Japanese enterprises and has warned that it might take necessary actions to protect its interests. This development occurs amidst already strained relations between China and Japan, largely due to Japan’s stance on Taiwan. Furthermore, China has recently imposed similar trade and export restrictions targeting Japanese firms, particularly concerning dual-use products that could have military applications.
Dichlorosilane is essential in creating ultra-thin silicon layers and other materials used in semiconductor manufacturing. Japan plays a significant role in the global supply of ultrapure DCS, making these new export restrictions particularly impactful on the semiconductor supply chain worldwide.