semiconductor

Wang Wentao, Minister of Commerce of the People’s Republic of China addresses attendees on behalf of Xi Jinping, President of China on day one of the BRICS summit at Sandton Convention Center in August 2023. China is opening an anti-dumping investigation into Japan over a key chemical used in manufacturing semiconductors, the Ministry of Commerce announced Wednesday. File Photo by Jemal Countess/UPI | License Photo

Jan. 7 (UPI) — China is opening an anti-dumping investigation into Japan over a key chemical used in manufacturing semiconductors, the Ministry of Commerce announced Wednesday.

The investigation is set to last a year as China probes whether Japan has been selling the chemical dichlorosilane at an unfairly low price — dumping — harming its domestic producers.

Dichlorosaline is commonly used to manufacture computer chips.

The investigation stems from a complaint by the Chinese company Sunfar that submitted evidence showing a 31% decrease in prices on the chemical from Japan despite an increase in imports between 2022 and 2024.

A review of the complaint found that it met the criteria for further investigation under Chinese laws and rules set out by the World Trade Organization.

“The investigating authority will conduct the investigation in accordance with the law, fully safeguard the rights of all interested parties and make an objective and impartial ruling based on the investigation results,” the Chinese Ministry of Commerce said in a statement.

The ensuing investigation will dig into dichlorosilane imports from Japan from July 1, 2024, through June 30, 2025.

Japan is home to the three leading producers of dichlorosilane, making it the top exporter of the chemical.

China’s top dichlorosilane producer has the fourth-largest market share of the chemical in the world. It relies heavily on imports from Japan, with Japanese products making up about 72% of China’s domestic market between 2022 and 2024.

On Tuesday, China banned the export of products to Japan’s military. Japan has warned China about pursuing control over Taiwan as China believes Taiwan to be part of its territory.

Wednesday’s announcement continues the escalating tension between the countries.

President Donald Trump speaks during an event in the Roosevelt Room of the White House in Washington, D.C., on December 19. He signed an executive order Friday blocking a semiconductor deal between U.S. and Chinese companies. Photo by Will Oliver/UPI | License Photo

Jan. 2 (UPI) — President Donald Trump on Friday signed an executive order stopping a semiconductor chips deal between U.S. and Chinese companies citing national security concerns.

The $2.92 million deal would have seen HieFo Corp., a Delaware-based company operated out of China, acquire the semiconductor chips and wafer fabrication businesses of New Jersey’s EMCORE Corp. The two companies announced plans for the deal in 2024.

“There is credible evidence that leads me to believe that HieFo Corporation, a company organized under the laws of Delaware (HieFo) and controlled by a citizen of the People’s Republic of China … might take action that threatens to impair the national security of the United States,” Trump’s order reads.

The executive order, issued under the Defense Production Act, prevents HieFo from having any interest or rights in Encore assets and orders HieFo to divest from Encore within 180 days. The divestment is expected to be overseen by the Committee on Foreign Investment in the United States.