Key points
- TSMC’s $100bn US investment backed by Trump deal
- Most funding through loans, not equity investment
- Japan aims for full deployment during Trump’s term
ISLAMABAD: Japan’s top trade negotiator, Ryosei Akazawa, stated on Saturday that the country’s newly agreed ¥82 trillion (£425 billion/$550 billion) investment package, part of a recent tariff deal with the United States, could be used to support Taiwanese companies building semiconductor plants on American soil.
Taiwanese chipmakers in the U.S. could benefit from Japan’s new US$550 billion investment package that emerged as part of a U.S.-Japan trade deal. pic.twitter.com/2yPJFpJyOe
— TaiwanPlus News (@taiwanplusnews) July 27, 2025
The broad investment initiative—comprising equity, loans, and guarantees—was agreed in exchange for reduced US tariffs on Japanese exports. However, the exact framework of the arrangement has yet to be finalised, according to Reuters.
“Japan, the United States, and like-minded partners are working together to build resilient supply chains in sectors critical to economic security,” Akazawa told the media.
He clarified that the financing would not be restricted to Japanese or American firms alone.
Reliance on TSMC
“For instance, should a Taiwanese semiconductor manufacturer set up a facility in the US and incorporate Japanese components or customise its output to suit Japanese needs, it would be eligible,” he explained, without naming specific companies.
Apple silicon unlocks a new level of performance for our users. And soon, many of these chips can be stamped “Made in America.” The opening of TSMC’s plant in Arizona marks a new era of advanced manufacturing in the U.S. — and we are proud to become the site’s largest customer. pic.twitter.com/rBoiEUwZaX
— Tim Cook (@tim_cook) December 6, 2022
The US remains heavily reliant on Taiwan’s TSMC for cutting-edge chip production, a dependency that has raised concerns due to Taiwan’s geographic and political proximity to China.
In March, TSMC announced plans for a £78 billion ($100 billion) investment in the US alongside US President Donald Trump at the White House. This builds on an earlier pledge of £50 billion ($65 billion) for three facilities in Arizona, one of which is already operational.
🚨 @POTUS announces a $100 BILLION new investment by TSMC in U.S. chips manufacturing! pic.twitter.com/PtiaxxwMXK
— The White House (@WhiteHouse) March 3, 2025
Japan plans to channel the investments through the state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI). A recent amendment to Japanese law has enabled JBIC to fund foreign companies deemed essential to the country’s supply chain security.
Avoiding tariffs
According to Akazawa, equity investment will comprise just 1–2 per cent of the total package, with the majority made up of loans and guarantees.
When questioned about a White House statement suggesting the US would retain 90 per cent of the profits from the initiative, Akazawa clarified that this referred solely to returns on equity investment, which represent a small slice of the total.
Although Japan initially aimed to claim half the returns, the trade-off is considered minor in comparison to the estimated ¥10 trillion (£67.7 billion) in tariff costs the country could avoid under the deal.
He added that Japan intends to deploy the full investment amount during President Trump’s current term in office.
