China put a 99.2% duty on a chemical chip fabs need

China has imposed a cash deposit of up to 99.2% on imports of a Japanese chemical that chip fabs use to build the films inside logic and memory chips.

The rate is close to prohibitive. It took effect on Tuesday.

China’s Ministry of Commerce published the preliminary determination on 7 September as Announcement No. 37 of 2026. Chan Ho-Him and Mari Yamaguchi reported the ruling and Tokyo’s response for the Associated Press, which describes Japan as the leading producer of ultrapure dichlorosilane for chip fabrication.

What the ruling says

The published rates are not uniform.

Shin-Etsu Chemical draws 99.2%. Denal Silane, a joint venture between Denka and Air Liquide, draws 80.8%. Every other Japanese exporter draws 99.2%.

So the largest supplier gets the top rate, and so does anyone who might replace it.

Dichlorosilane, known in fabs as DCS, feeds chemical vapour deposition. It lays down silicon and oxide...

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