$550-B Package In Trade Deal Could Finance Taiwanese Chipmaker In U.S.

Japan’s $550 billion investment package, agreed to under this week’s U.S. tariff deal, could help finance a Taiwanese company building semiconductor plants in the U.S., Japan’s top trade negotiator Ryosei Akazawa said, Makiko Yamazaki reported for Reuters.

In March, TSMC announced a $100 billion U.S. investment plan with President Trump at the White House, in addition to its previously pledged $65 billion for three plants in Arizona, one of which is already operational. I Photo: TrickHunter Wikimedia Commons

Japan agreed to the massive U.S.-bound investment initiative—which includes equity, loans, and guarantees—in exchange for lower tariffs on its exports to the U.S. However, the structure of the financing scheme remains unclear.

“Japan, the U.S., and like-minded countries are working together to build supply chains in sectors critical to economic security,” Akazawa told Japan’s public broadcaster NHK.

He noted that projects eligible for financing under the package are not limited to U.S. or Japanese firms.

“For example, 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,” he said, without naming specific companies.

The U.S. remains heavily reliant on Taiwan Semiconductor Manufacturing Co. (TSMC) for advanced chip production—an economic security concern due to Taiwan’s proximity to China.

In March, TSMC announced a $100 billion U.S. investment plan with President Trump at the White House, in addition to its previously pledged $65 billion for three plants in Arizona, one of which is already operational.

Japan will use the state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) to fund the investments. A recent legal revision has enabled JBIC to finance foreign companies considered critical to Japan’s supply chains.

Akazawa told NHK that only 1–2% of the $550 billion package will be equity investments, with the bulk coming in the form of loans and guarantees.