Japan’s US$550 billion investment package with the US could support projects by Taiwanese semiconductor firms in the US, according to Japan’s chief trade negotiator, Ryosei Akazawa.

The initiative includes loans, equity investments, and guarantees aimed at strengthening vital supply chains.

Financing may extend to Taiwanese chipmakers if they use Japanese components or tailor products for Japanese markets.

The US relies heavily on Taiwan’s TSMC for advanced chip manufacturing, raising concerns due to its proximity to China.

TSMC is investing US$65 billion to build three semiconductor plants in Arizona, with one already operational.

Japan will use state-owned institutions like JBIC and NEXI to facilitate the funding.

The package is expected to roll out during the current US administration, helping Japan avoid around 10 trillion yen (US$67.72 billion) in tariff costs.