China hits Japan with anti-dumping measures on chip chemical

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Japan used to be China’s biggest supplier of dichlorosilane, until South Korea overtook it in 2025.

Japan used to be China’s biggest supplier of dichlorosilane, until South Korea overtook it in 2025.

PHOTO: REUTERS

  • China has imposed preliminary anti-dumping deposits of up to 99.2% on Japanese dichlorosilane imports, a chemical crucial for semiconductor production.
  • This move is part of China's retaliation in a diplomatic dispute with Japan over Taiwan and comes before key US visits by Japanese and Chinese leaders.
  • Japan, once China's top supplier of this chemical, has seen its market share fall to South Korea, with imports worth US$2.6 million in July 2026.

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BEIJING – China unveiled preliminary anti-dumping measures on imports from Japan of a chemical used to make semiconductors, adding to its retaliation in a diplomatic dispute over Taiwan. 

Companies importing Japanese dichlorosilane, used to process silicon wafers into semiconductors, are required to provide cash deposits of up to 99.2 per cent from Sept 8, Beijing’s Commerce Ministry said in a statement.

Beijing and Tokyo have been embroiled in a feud since November 2025, when Prime Minister Sanae Takaichi suggested Tokyo could deploy its military if China attempts to seize Taiwan, a self-ruled democracy claimed by Beijing.

Since then, China has responded with moves like warning travellers to avoid Japan and tightening some export controls.

The move comes ahead of Takaichi’s expected visit to the US in September.

Chinese leader Xi Jinping also plans to meet US President Donald Trump in the White House on Sept 24.

Japan is the global leader in ultra-high purity dichlorosilane, though China has sought to expand upstream in the chip supply chain, nurturing research and development of key materials and tools.

The measures are part of a preliminary ruling resulting from an anti-dumping investigation China launched into dichlorosilane in January.

China’s Commerce Ministry said that dumping caused substantial harm to China’s domestic industry.

The deposit rates were set at 80.8 per cent for Denal Silane Co and 99.2 per cent for Shin-Etsu Chemical Co and other Japanese producers, the Commerce Ministry said.

Japan used to be China’s biggest supplier of dichlorosilane, until South Korea overtook it in 2025.

In July, imports from Japan were worth US$2.6 million (S$3.29 million), accounting for about 33 per cent of China’s total dichlorosilane imports, customs data show. BLOOMBERG

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