top of page

Japan’s USD 550 Billion Trade Deal May Fund Taiwanese Chipmaker’s US Expansion

  • Jul 28, 2025
  • 2 min read

Japan’s USD 550 billion investment package, part of a recent trade agreement with the United States, could help finance a Taiwanese semiconductor company’s operations in the US, according to Japan’s top trade negotiator.


A man in a suit with pins on the lapel stands against a dark background. He appears thoughtful, wearing glasses and a pink patterned tie.
Credit: Stefani Reynolds/Bloomberg

Ryosei Akazawa, Japan’s chief trade negotiator, said on Saturday that the package, which includes equity, loans and guarantees, may support projects involving non-Japanese firms if they contribute to Japan’s economic security.


The investment initiative was agreed in exchange for reduced tariffs on Japanese exports to the US.


Akazawa told public broadcaster NHK that the financing scheme is not limited to Japanese or American companies.


“For example, if a Taiwanese chipmaker builds a plant in the US and uses Japanese components or tailors its products to meet Japanese needs, that’s fine too,” he said, without naming specific firms.


The US relies heavily on Taiwan Semiconductor Manufacturing Company (TSMC) for advanced chip production, raising concerns over economic security due to Taiwan’s proximity to China.


Large red "tsmc" letters in front of a modern building with blue windows and a central circular design. Bright, clear day.
Credit: TSMC

TSMC previously announced a USD 100 billion investment in the US, including USD 65 billion for three plants in Arizona. One of the plants is already operational.


Japan will channel the funds through the state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).


A recent legal revision allows JBIC to finance foreign companies considered vital to Japan’s supply chains.


Akazawa said equity investments would make up only 1% to 2% of the total package, with most of the funding provided through loans and guarantees.


He also addressed a White House statement that the US would retain 90% of the profits from the package, clarifying that the figure applies only to equity returns, which form a small portion of the total.


Although Japan initially aimed to secure half of the returns, Akazawa said the concession was minor compared to the estimated USD 67.72 billion in tariff costs Japan could avoid under the deal.

  • Japan’s USD 550 billion trade deal includes loans, equity and guarantees

  • Funds may support Taiwanese chipmaker’s US operations

  • TSMC has pledged USD 100 billion for US expansion, including Arizona plants


Source: REUTERS

 
 
 

Comments

As Asia becomes the fastest growing tech adoption region, biz360tv is committed to keeping readers up to date on the latest developments in business technology news in Asia and beyond.

While we use new technologies such as AI to improve our storytelling capabilities, our team carefully select the stories and topics to cover and goes through fact-checking, editing, and oversight before publication. Please contact us at editorial@tech360.tv if you notice any errors or inaccuracies. Your feedback will be vital in ensuring that our articles are accurate for all of our readers.

bottom of page