Key facts
- Japan and the US are discussing building a semiconductor factory.
- The factory is expected to cost between 2 trillion and 3 trillion yen ($12.85 billion to $19.27 billion).
- GlobalFoundries is expected to operate the factory, focusing on logic semiconductors.
- The project is part of a $550 billion investment initiative between Japan and the US.
- AI and semiconductor projects are key priorities for the next phase of the economic partnership.
- Japanese Trade Minister Ryosei Akazawa and US officials met in Washington.
Japan and the United States are in discussions to construct a semiconductor factory as part of a $550 billion investment initiative, according to a Nikkei report. The project is estimated to be worth between 2 trillion and 3 trillion yen ($12.85 billion to $19.27 billion) and is expected to be operated by chipmaker GlobalFoundries, focusing on logic semiconductors.
This development is part of a broader economic partnership where artificial intelligence and semiconductor projects are being prioritized. Japanese Trade Minister Ryosei Akazawa confirmed that Tokyo and Washington are committed to the investment framework, having recently held talks in Washington with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. While specific projects for the third round of investments were not disclosed, Akazawa indicated that AI and semiconductor initiatives would be given significant weight.
The $550 billion investment vehicle was established as a key component of a U.S.-Japan trade agreement. Previous investment packages have directed substantial funding toward U.S. energy and critical infrastructure, including natural gas and nuclear energy projects. The confirmation that Japan will not face additional tariffs beyond the existing trade agreement aims to provide greater predictability for Japanese companies investing in the United States. The increasing focus on AI infrastructure and semiconductor supply chains reflects a strategic effort by both countries to bolster cooperation in critical technologies and expand their overall industrial and trade relationship.