China began requiring cash deposits on Japanese imports of dichlorosilane, a chemical used in semiconductor manufacturing, at rates of up to 99.2 percent. The provisional measure applies to Shin-Etsu Chemical, Denal Silane and other exporters while China’s commerce ministry continues an anti-dumping investigation.
Beijing says Japanese suppliers sold the material in China at unfairly low prices and harmed domestic producers. A final determination has not been issued. The deposit functions as an immediate cost and risk for importers, but the eventual duty rate or release of deposits will depend on the investigation’s final findings.
Japan’s chief cabinet secretary protested and said Tokyo would respond to avoid unfair harm to Japanese companies. The action comes amid strained relations following Japanese statements about a possible military response to a conflict over Taiwan. China has also imposed controls on dual-use exports to Japanese firms.
Dichlorosilane, commonly called DCS, is used in chemical-vapor processes that place thin layers of silicon, oxide and other films in logic and memory chips. Japan is a leading producer of ultrapure DCS. Semiconductor plants qualify materials carefully, so a change in supplier can require testing even when the chemical formula is identical.
The public announcement establishes the deposit requirement and the governments’ stated positions. It does not yet quantify affected shipment volumes, inventory levels at Chinese chip plants or the capacity of domestic alternatives. Those factors will determine whether the measure changes production schedules or primarily shifts commercial terms.
The checked record for China Imposes Near-100% Deposits on a Japanese Chipmaking Chemical establishes the following dated facts: Deposit rates can reach 99.2 percent. The measure applies to Japanese dichlorosilane imports. Shin-Etsu Chemical and Denal Silane are among the affected exporters. China calls the measure provisional while its investigation continues. Japan formally protested the action. The relevant background is also specific: DCS is used to deposit thin films in logic and memory chip production. Japan leads production of ultrapure DCS. China-Japan relations are also strained by Taiwan and dual-use export disputes. Shipment volumes, inventories and substitute-supplier readiness were not disclosed. The cited reporting does not resolve questions beyond those stated limits.