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- Japan says $550 billion package in trade deal could finance Taiwanese chipmaker in US</p>
<p>Makiko YamazakiJuly 26, 2025 at 11:26 PM</p>
<p>By Makiko Yamazaki</p>
<p>TOKYO (Reuters) -Japan's $550 billion investment package agreed in this week's U.S. tariff deal could help finance a Taiwanese firm building semiconductor plants in the U.S., Japan's top trade negotiator Ryosei Akazawa said on Saturday.</p>
<p>Japan agreed to the sweeping U.S.-bound investment initiative, which includes equity, loans and guarantees, in exchange for lower tariffs on its exports to the U.S.</p>
<p>However, the structure of the scheme remains unclear.</p>
<p>"Japan, the United States, and like-minded countries are working together to build supply chains in sectors critical to economic security," Akazawa told public broadcaster NHK.</p>
<p>To that end, he said projects eligible for financing under the package are not limited to U.S. or Japanese firms.</p>
<p>"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 specifying companies.</p>
<p>The U.S. is significantly reliant on Taiwan's TSMC for advanced chip manufacturing, raising economic security concerns due to geographic proximity to China.</p>
<p>TSMC announced plans for a $100 billion U.S. investment with U.S. President Donald Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running.</p>
<p>Japan will use state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) for the investments. A recent law revision has enabled JBIC to finance foreign companies deemed critical to Japan's supply chains.</p>
<p>Akazawa told NHK that equity investment would account for just about 1-2% of the $550 billion, suggesting that the bulk will come in the form of loans and guarantees.</p>
<p>When asked about the White House statement that the U.S. would retain 90% of the profits from the package, he clarified that the figure refers only to returns on equity investment, which would represent a small fraction of the total.</p>
<p>While Japan initially hoped to secure half of the returns, a loss from the concession on the profit-sharing would be marginal compared to the roughly 10 trillion yen ($67.72 billion) in tariff costs that could be avoided under the deal, he said.</p>
<p>He added that Japan aims to deploy the $550 billion investments during Trump's current term.</p>
<p>($1 = 147.6600 yen)</p>
<p>(Reporting by Makiko Yamazaki; Editing by Andrew Cawthorne)</p>
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