China imposes steep anti-dumping duties on Japanese chip chemicals

China's commerce ministry has implemented anti-dumping measures requiring importers of Japanese dichlorosilane to post cash deposits of up to 99.2 per cent, effectively blocking most new purchases of the chemical compound from Japanese suppliers beginning September 8.

Dichlorosilane is a critical precursor material used in the production of polysilicon, a key input for both semiconductor manufacturing and solar panel production. The deposit requirement applies to all Japanese exporters of the chemical and represents a significant escalation in trade barriers between Beijing and Tokyo.

The anti-dumping investigation, initiated earlier this year, concluded that Japanese companies were selling dichlorosilane at below-market prices in the Chinese market. Chinese authorities determined that domestic producers faced material injury from the alleged dumping practices.

The measure impacts several Japanese chemical manufacturers that have supplied Chinese semiconductor and solar producers. Industry sources anticipate the restrictions could tighten supplies of the material in regional markets, potentially affecting production costs and timelines for manufacturers across Southeast Asia and beyond who rely on Chinese polysilicon producers.