Japan has expressed strong objections to China’s newly implemented restrictions on the exportation of dichlorosilane (DCS), a chemical critical in the semiconductor industry. These restrictions have prompted Japan to evaluate their potential repercussions on its companies. Under the new regulations, Chinese importers of DCS sourced from Japan are required to make cash deposits as high as 99.2%. This measure directly impacts Japanese firms, including Shin-Etsu Chemical and Denal Silane.
According to Chinese authorities, the restrictions are temporary and were enacted following an anti-dumping investigation that suggested Japanese DCS exports were detrimental to China’s local industry. A definitive ruling will be made once the investigation concludes. In response, Japan’s government has called on China to ensure that these measures do not unjustly harm Japanese enterprises and has indicated its readiness to take necessary countermeasures if the situation demands.
This development arises amidst a backdrop of deteriorating relations between China and Japan, partly due to Japan’s stance on Taiwan. In addition to the DCS restrictions, Beijing has implemented various trade and export controls targeting Japanese businesses and products with dual-use capabilities that could have military applications.
In the semiconductor manufacturing process, DCS plays a vital role in forming ultra-thin silicon layers on computer chips. Given Japan’s status as a leading global producer of ultrapure DCS, the newly imposed restrictions could have significant implications for the semiconductor supply chain worldwide.