Japan has expressed its discontent regarding China’s latest move to enforce new export restrictions on dichlorosilane (DCS), a chemical crucial in semiconductor production. The Japanese government is currently evaluating the potential repercussions of these measures on its companies, which include prominent exporters like Shin-Etsu Chemical and Denal Silane.
The new restrictions require Chinese importers of DCS from Japan to provide cash deposits of up to 99.2%. According to China, these measures are temporary and are a response to an anti-dumping investigation that concluded Japanese DCS exports had adversely affected China’s domestic market. A conclusive decision on this matter is anticipated once the investigation wraps up.
Amid these developments, Japan has urged China to ensure that the new restrictions do not unfairly impact Japanese businesses. The Japanese government has also indicated its readiness to take necessary actions to protect its economic interests if needed.
This move by China occurs against a backdrop of deteriorating relations between the two nations, partly due to Japan’s stance on Taiwan. Furthermore, China has implemented other trade and export restrictions targeting Japanese companies, particularly those involved with dual-use products that could have military applications.
DCS plays a vital role in the semiconductor industry by facilitating the creation of very thin silicon and other material layers on computer chips. As Japan is a leading global producer of ultrapure DCS, the new Chinese export restrictions are poised to have a significant impact on the semiconductor supply chain.