China imposes anti-dumping security deposits on Japanese semiconductor chemical

China’s Ministry of Commerce has implemented preliminary anti-dumping measures on imports of dichlorosilane (DCS) from Japan. Starting September 8, 2026, importers of the chemical must provide cash security deposits. The deposit rates vary by producer, with rates set at 80.8% for Denal Silane and 99.2% for Shin-Etsu Chemical and other Japanese manufacturers.

Dichlorosilane is a high-purity toxic gas essential for thin-film deposition processes in semiconductor chip fabrication. While Japan is a global leader in ultra-high-purity DCS, South Korea overtook it as China’s primary supplier in 2025. In July, Japanese imports accounted for approximately 33% of China’s total DCS imports, valued at $2.6 million.

The measures follow an anti-dumping investigation launched by Beijing in January 2026, prompted by a complaint from domestic producer Tangshan Sanfu Electronic Materials Co. Ltd. The investigation alleges that Japanese imports undercut Chinese manufacturers, noting that prices for Japanese DCS dropped by 31% between 2022 and 2024. The probe is expected to conclude by January 2027, though the timeline may be extended by six months.