Japan has raised objections to China’s recent imposition of new export restrictions on dichlorosilane (DCS), a crucial chemical in semiconductor production, due to concerns over the potential impact on Japanese businesses. The restrictions demand that Chinese companies importing DCS from Japan must now provide cash deposits as high as 99.2%. This move affects several Japanese exporters, notably Shin-Etsu Chemical and Denal Silane.
These measures have been described by China as provisional, introduced following an anti-dumping investigation that reportedly found Japanese DCS exports causing harm to China’s domestic industry. A definitive decision is anticipated once the investigation concludes. In response, the Japanese government has urged China to ensure these restrictions do not unjustly harm Japanese enterprises and has indicated that it will consider appropriate actions if necessary.
The development occurs amidst deteriorating relations between China and Japan, partly due to Japan’s stance on Taiwan. Additionally, Beijing has implemented other trade and export limitations affecting Japanese companies, particularly those involving products that have dual-use applications, including potential military uses.
Dichlorosilane is essential in the semiconductor manufacturing process, where it is used to form ultra-thin layers of silicon and other materials on computer chips. Given that Japan is a leading global producer of ultrapure DCS, the new export restrictions are significant for the semiconductor supply chain, a vital sector in global technology industries.
