Japan protests China's new export curbs on a key chipmaking chemical

On Tuesday, Japanese officials raised the alarm in Beijing over a fresh set of export controls that target dichlorosilane (DCS), a highly purified chemical essential for making the thin silicon layers inside modern microchips.

China’s customs agency said the move is part of an anti‑dumping probe, accusing Japanese suppliers of selling DCS at prices that undercut domestic producers and, in the process, “harmed China’s industry.” As a result, importers now have to lodge cash deposits of up to a staggering 99.2% of the cargo’s value before the material can clear customs.

The new rule directly hits Japan’s biggest DCS manufacturers – Shin‑Etsu Chemical, Denal Silane and a handful of smaller firms. Those companies, which have long dominated the global market for ultrapure DCS, now face an administrative hurdle that could delay shipments for weeks, if not months.

Tokyo’s response was swift. Chief Cabinet Secretary Minoru Kihara, Japan’s top government spokesperson, called the measure “unfair” and said the government is reviewing the situation to protect Japanese businesses. He added that Japan will “respond appropriately,” though he stopped short of spelling out any retaliatory steps.

The dispute comes on the heels of simmering tensions between the two neighbours. Since November, relations have been frosty after Prime Minister Sanae Takaichi hinted that Japan might intervene militarily if China were to use force against Taiwan – a claim Beijing fiercely rejects.

For the semiconductor industry, the stakes are high. DCS is used in a chemical‑vapor‑deposition process that lays down ultra‑thin films of silicon, silicon‑oxide or other materials on chips. Any bottleneck in supply could ripple through the global supply chain, potentially raising costs for everything from smartphones to data‑center servers.

China’s commerce ministry says the anti‑dumping investigation is provisional, and a final ruling will follow later this year. In the meantime, Japanese exporters are left scrambling, and analysts warn that the episode could trigger a broader scramble for alternative sources of the material.