A top trade official in Japan has said on Saturday that the $550 billion in investments secured through a tariff deal with the United States might be used to support Taiwanese semiconductor factories inside the country. Speaking to NHK, Ryosei Akazawa confirmed the funding wouldn’t be restricted to only Japanese or American companies.
Japan made the deal this week with the United States, agreeing to pour funds into US-related projects—through equity, loans, and guarantees—in exchange for lower import tariffs on its goods. The exact layout of the program is still vague. But Akazawa maintains that what matters now is building supply chains that are “critical to economic security.” He added, “If a Taiwanese chipmaker builds a plant in the U.S. and uses Japanese components or tailors its products to meet Japanese needs, that’s fine too”. However, he did not name a specific company.
TSMC could benefit from the agreement between Japan and the US
Taiwan’s TSMC, the world’s top advanced chipmaker, already announced a $100 billion investment plan in the United States earlier this year. The announcement came in March during a White House event with President Donald Trump, and it added to $65 billion already committed toward three chip facilities in Arizona. One of those factories is already running.
The reliance on Taiwan for high-end chips has been seen as a risk in the US, especially due to its proximity to China. Japan is trying to address that risk, not just for the U.S., but for itself too. Under the deal, Japan is expected to route most of the $550 billion through two state-backed financial arms: the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI). A newly revised law lets JBIC finance foreign firms if they play a role in protecting Japan’s supply chains.
According to Akazawa, only a small part—just 1 to 2%—of the total investment would be in equity. The rest will be loans and insurance guarantees. That means Japan is not trying to take ownership in these projects; it’s trying to support them without carrying the long-term risks of being a shareholder. When asked about a White House claim that the U.S. would keep 90% of the profits from the investment deal, Akazawa clarified what that number means.
According to him, the U.S. was referring only to returns from equity shares, which would be a very small part of the overall fund. “That figure refers only to returns on equity investment,” he said. Japan initially wanted to receive half of the profits, but Akazawa said the compromise wasn’t a huge loss. The country is saving about 10 trillion yen, or around $67.72 billion, in tariff expenses due to the agreement. That trade-off made the decision easier.
He also added that the government intends to roll out the entire $550 billion within the remainder of Trump’s tenure. It sets a deadline for planning and disbursing the funds. Meanwhile, no official timeline has been released for when the first batch of funds will be released. In addition, no firms—Taiwanese or otherwise—have confirmed whether they’re applying. But Akazawa’s comments made it clear that Japan is ready to back whoever helps build secure chip supply chains, whether that’s in Tokyo, Taipei, or Texas.
