Japan’s $550 billion investment package in the U.S. tariff deal could fund a Taiwanese firm building semiconductor plants in the U.S., says trade negotiator Ryosei Akazawa. The investment initiative includes equity, loans, and guarantees for lower tariffs on Japanese exports to the U.S. The structure of the scheme remains unclear.

Akazawa emphasizes building supply chains critical to economic security with the U.S. and like-minded countries. Eligible projects under the package are open to all firms, not just American or Japanese. For example, a Taiwanese chipmaker using Japanese components in the U.S. is acceptable.

TSMC’s significant role in U.S. chip manufacturing raises security concerns. TSMC plans a $100 billion U.S. investment on top of $65 billion for Arizona plants. Japan will use JBIC and NEXI for investments, with JBIC now able to finance foreign companies crucial to its supply chains.

Equity investment in the $550 billion package will be minimal, with loans and guarantees making up the bulk. The U.S. will retain 90% of equity investment profits, a small portion of the total package. Japan aims to deploy the investments during Trump’s current term, prioritizing tariff cost avoidance.

Read more at Yahoo Finance: Japan says $550 billion package in trade deal could finance Taiwanese chipmaker in US