Japanese Chemical Stocks Drop as China Launches Anti-Dumping Probe into Chipmaking Materials
Shares of major Japanese chemical manufacturers fell on Thursday after China’s commerce ministry announced an anti-dumping investigation into imports of dichlorosilane, a key chemical used in semiconductor production. The move comes amid rising tensions between Tokyo and Beijing and renewed efforts by China to strengthen self-sufficiency in advanced technology sectors.
Japanese Stocks Slide, Chinese Rivals Surge
In Tokyo, shares of Shin-Etsu Chemical dropped 3.4%, while Mitsubishi Chemical fell 0.5%, matching the broader Topix index’s decline. A Shin-Etsu spokesperson said the company was reviewing the situation but did not expect a significant financial impact. Mitsubishi Chemical declined to comment.
Japanese manufacturers have long dominated the supply of high-quality materials and equipment critical to chipmaking. Any trade restrictions or tariffs could therefore disrupt a key link in the global semiconductor supply chain.
Meanwhile, Chinese chemical producers rallied sharply following the probe’s announcement. Tangshan Sunfar Silicon Industries and Hubei Heyuan Gas both surged by the daily limit of 10%, while Jiangsu Nata Opto-Electronic Material climbed 3%. Analysts said the gains reflected investor optimism that Chinese firms could benefit from a shift in demand toward domestic suppliers.
China Steps Up Push for Tech Independence
The Chinese commerce ministry said the investigation was launched at the request of domestic producers, who allege that imports of dichlorosilane from Japan increased steadily between 2022 and 2024 while prices fell by about 31%, damaging their operations. Dichlorosilane is primarily used in thin-film deposition processes during semiconductor manufacturing.
The announcement follows China’s decision earlier this week to ban exports of dual-use items to Japan, a move that further strained relations between the two Asian powers. The countries have been at odds since Japanese Prime Minister Sanae Takaichi remarked in November that a potential Chinese attack on Taiwan threatening Japan’s security could trigger a military response—comments that Beijing condemned as “provocative.”
Growing Tensions in the Tech Race
The probe underscores the widening technology rivalry between Japan and China, both seeking to secure control over critical materials used in chip production. Beijing’s anti-dumping inquiry could also be seen as part of its broader strategy to promote local alternatives in the face of global supply chain challenges and geopolitical friction.
Market analysts said they expect limited immediate impact on Japanese firms’ earnings but warned that extended restrictions could add uncertainty for chipmakers reliant on Japanese materials.
with inputs from Reuters
