Japan has lodged a protest against China’s recent decision to implement stringent export restrictions on dichlorosilane (DCS), a critical chemical in semiconductor production. The Japanese government is currently evaluating the potential repercussions these restrictions may have on its companies. China’s new measures require importers of DCS from Japan to provide cash deposits of up to 99.2%, affecting major Japanese exporters such as Shin-Etsu Chemical and Denal Silane.
The Chinese government claims these restrictions are temporary, introduced following an anti-dumping investigation that concluded Japanese exports were detrimental to China’s domestic industry. The final decision on these measures will be made once the investigation concludes. Japan has urged China to ensure that these actions do not unjustly harm its businesses and has indicated a willingness to respond appropriately should the need arise.
This development occurs amidst deteriorating diplomatic relations between China and Japan, particularly concerning Japan’s stance on Taiwan. In addition to the DCS restrictions, China has also imposed other trade and export limitations on Japanese companies, particularly concerning dual-use products that could have military applications.
Dichlorosilane plays a vital role in semiconductor manufacturing, where it is used to form ultra-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 could have significant implications for the global semiconductor supply chain.