Media Partner For

Alliance Partner For

Home » Market » Government » China Finds Japanese DCS Dumping, Imposes Up to 99.2% Deposits

China Finds Japanese DCS Dumping, Imposes Up to 99.2% Deposits

China Flag

China has imposed provisional anti-dumping measures on dichlorosilane (DCS) imported from Japan, requiring importers to post cash security deposits of up to 99.2% of the import value as Beijing investigates alleged dumping of the semiconductor manufacturing material.

China’s Ministry of Commerce (MOFCOM) announced the preliminary measures on September 7, with the requirements taking effect September 8. The deposits vary by producer, with Shin-Etsu Chemical Co. and other Japanese producers subject to a 99.2% rate, while Denal Silane, a joint venture between Denka Co. and Air Liquide, faces an 80.8% rate.

The measures are provisional and are not a final determination of anti-dumping duties. Importers must provide the security deposits to Chinese customs when the affected products enter the country. The amounts could be adjusted depending on the outcome of the investigation.

DCS is a high-purity specialty gas used in semiconductor manufacturing to deposit thin films onto silicon wafers. The material is used across a range of chipmaking applications, including logic and memory devices, making it a specialized input for semiconductor fabrication.

MOFCOM launched the anti-dumping investigation on January 7, 2026, following a complaint from Tangshan Sanfu Electronic Materials Co., a Chinese DCS producer. The investigation examines imports during the period from July 1, 2024, through June 30, 2025, while the injury assessment covers the period beginning January 1, 2022.

The ministry said preliminary evidence indicated that Japanese DCS had been dumped into the Chinese market and that the imports had caused substantial damage to China’s domestic DCS industry.

Japan has historically been a major supplier of ultra-high-purity DCS to China, although South Korea became the largest supplier in 2025. Japanese DCS accounted for about 33% of China’s total DCS imports in July 2026, with imports valued at approximately $2.6 million, according to the information provided.

The steep provisional deposits could significantly increase the landed cost of Japanese DCS for Chinese semiconductor manufacturers. Buyers could respond by shifting purchases toward suppliers from other countries or increasing reliance on domestic production.

The move also adds another layer to growing trade tensions between China and Japan, particularly in areas linked to semiconductors, advanced technology and strategic materials. Both countries have introduced trade and export-control measures affecting technology and dual-use goods in recent years.

MOFCOM cited Articles 28 and 29 of China’s anti-dumping regulations as the legal basis for the provisional measures.

The investigation is expected to reach a final determination by January 7, 2027, although Chinese anti-dumping rules allow for a possible six-month extension. The final decision will determine whether definitive duties are imposed and at what rates.

If the final duty is lower than the provisional deposit, the excess amount is expected to be refunded. If the final rate is higher, importers could be required to pay the difference.

The outcome will be closely watched by semiconductor manufacturers and specialty-gas suppliers as China continues efforts to strengthen domestic supply chains for critical chipmaking materials.

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Share this post with your friends

RELATED POSTS