Japan's 72.5% Photoresist Monopoly: A Strategic Lever in China-Japan Trade War 2026

Beijing's swinging the sword, but Tokyo's holding the vital point. On January 7, 2026, China announced an anti-dumping investigation into critical semiconductor materials from Japan. It's the latest escalation after Japanese Prime Minister Sanae Takaichi made controversial remarks regarding Taiwan back in November.

Japan's Semiconductor Photoresist Monopoly as a Strategic Lever

While China targets Japan with trade probes, analysts suggest Tokyo holds a far more dangerous card: the global supply of photoresist. This light-sensitive chemical is indispensable for engraving microscopic circuits onto chips. Without it, China's advanced chip manufacturing would grind to a halt.

• Four Japanese giants—JSR, Tokyo Ohka Kogyo, Shin-Etsu Chemical, and Fujifilm—controlled 72.5% of the global market.
• TrendForce estimates China's domestic substitution for this material is currently below 5%.

Escalating Tensions and Trade Barriers

"Japan can stop exporting important goods such as semiconductor manufacturing equipment," says Minoru Nogimori, senior economist at the Japan Research Institute. While China has already banned seafood and restricted dual-use goods, Japan's control over the chemical foundations of technology remains a significant deterrent.