China Imposes Steep Anti-Dumping Duties on Japanese Chipmaking Chemical Amid Bilateral Tensions
SCMP · 2 SOURCESabout 2 hours ago2 MIN
Summary
China's Ministry of Commerce announced on Monday that it would impose provisional anti-dumping duties of up to 99.2 percent on imports of dichlorosilane from Japan, a critical chemical used in thin-film deposition processes during semiconductor manufacturing. The preliminary ruling came after an eight-month investigation that concluded dumped Japanese imports had caused material harm to China's domestic industry . Importers were required to begin paying cash deposits to Chinese customs starting Tuesday .
Key Points
- China's anti-dumping duties target dichlorosilane (DCS), a key chemical for chip production, with rates ranging from 80.8 percent for Denal Silane to 99.2 percent for Shin-Etsu Chemical and other Japanese exporters .
- Japan dominates global production of dichlorosilane, with the world's top three producers—Shin-Etsu Chemical, Nippon Sanso, and Sumitomo Seika—all based in Japan, while China's largest producer Tangshan Sunfar Silicon ranks only fourth globally .
- Japanese products held 72 percent of China's domestic market for the chemical between 2022 and 2024, according to Sunfar, the company that petitioned for the investigation .
- Japan protested the measures, with Chief Cabinet Secretary Minoru Kihara stating Tokyo would respond appropriately to avoid unfair harm to Japanese companies .
- Bilateral relations have been strained since November, when Prime Minister Sanae Takaichi suggested Japan could use military force if China attacked Taiwan .
Why It Matters
The duties target a chemical essential to semiconductor production at a time when both nations are vying for technological supremacy and supply chain security. With Japan's top three chemical producers facing deposit rates of up to 99.2 percent, the measures could significantly disrupt chip manufacturing supply chains globally and further strain Sino-Japanese relations already tested by territorial and security disputes .
The duties target a chemical essential to semiconductor production at a time when both nations are vying for technological supremacy and supply chain security. With Japan's top three chemical producers facing deposit rates of up to 99.2 percent, the measures could significantly disrupt chip manufacturing supply chains globally and further strain Sino-Japanese relations already tested by territorial and security disputes .