UPDATE 2-Japan chemical makers fall, China rivals jump after Beijing launches anti-dumping probe

Shares in Japanese chemical manufacturers fell on Thursday while those of their Chinese rivals ‌jumped after China's commerce ministry said it is launching an anti-dumping probe into imports of chemicals used in chipmaking. Shin-Etsu Chemical shares ⁠dropped 3.4% in Tokyo trade.

Shares in Japanese chemical manufacturers fell on Thursday while those of their Chinese rivals ‌jumped after China's commerce ministry said it is launching an anti-dumping probe into imports of chemicals used in chipmaking.

Shin-Etsu Chemical shares ⁠dropped 3.4% in Tokyo trade. Mitsubishi Chemical lost 0.5%, in line with the benchmark index. A spokesperson for Shin-Etsu Chemical said the company is investigating the matter but added that, even if there ​were any impact on the company's revenue and expenditure, it would not be significant. Mitsubishi ‍Chemical declined to comment.

Japanese companies have carved out a niche supplying high quality materials and equipment used in chipmaking. In China, shares of rival Tangshan Sunfar Silicon Industries Co jumped by their limit of 10%, as ⁠did ‌shares in Hubei Heyuan Gas, ⁠which makes silicon-based function materials.

Shares in Jiangsu Nata Opto-Electronic Material rose 3%. The probe into imports from Japan of ‍dichlorosilane comes amid strained ties between the two countries and as Beijing steps up efforts to become ​more self-sufficient in key technologies.

China this week also announced a ban on exports of ⁠dual-use items to Japan. Relations between the countries have deteriorated since Japan's Prime Minister Sanae Takaichi said in November that ⁠a Chinese attack on Taiwan threatening Japan's survival could trigger a military response, a remark that Beijing said was "provocative."

Dichlorosilane is a precursor chemical mainly used in thin-film deposition processes ⁠in chip manufacturing. China said the probe was initiated at the request of its domestic producers, ⁠which claim volumes ‌imported from Japan showed an overall upward trend from 2022 to 2024 while prices fell by a cumulative 31%, causing damage to their ⁠operations.