taiwan and japan join forces in semiconductors amid us tariff concerns

2025-05-07 general

Taipei, Wednesday, 7 May 2025.
taiwan and japan are deepening their collaboration in the semiconductor industry. they are establishing a technology promotion association. this move comes as the us prepares to impose chip tariffs. the initiative aims to boost innovation. it also enhances competitiveness in the global market. several major tech firms are involved. globalwafers and realtek are among them. the association will serve as a platform. it will address industry needs. it will also facilitate direct communication with both governments. the timing is critical. the us is expected to announce semiconductor tariffs soon.

association launch and key players

The “Taiwan-Japan Semiconductor Technology Promotion Association” was officially established today, spearheaded by Hsieh Chang-ting, former Ambassador to Japan and current Presidential Office advisor [1]. Several leading tech companies are founding members. These include GlobalWafers, Hermes-Epitek, Topco Technologies, Macronix, and Realtek Semiconductor [1]. The association aims to consolidate industry demands. It also seeks to facilitate direct communication with the Taiwanese and Japanese governments, especially as the US prepares to unveil its semiconductor tariff policies [1].

minister kuo’s optimism amid tariff concerns

Economic Minister Kuo智輝 addressed the association’s inauguration. He acknowledged ongoing negotiations with the US. Kuo expressed confidence in securing favorable outcomes for Taiwan, emphasizing the complementary nature of Taiwanese and American technologies in the chip sector [1][6]. The US government is expected to announce semiconductor tariffs on May 8, heightening the urgency of these discussions [6]. Premier Cho also stated that Taiwan would submit an opinion based on the “232 clause” and expects effective consultations in the next phase [6].

industry collaboration and supply chain resilience

Kuo highlighted the changing global landscape. He noted the shift from efficiency-driven supply chains to those prioritizing security and resilience [7]. He emphasized that Taiwan excels in chip manufacturing, packaging, testing, and AI hardware. Japan has strengths in materials, equipment, and basic science [1][7]. This complementary structure enables both countries to maintain efficiency. It also enhances flexibility amidst supply chain restructuring [1]. Japan’s reliance on Taiwanese semiconductors, particularly with TSMC’s second Kumamoto plant, is expected to drive further collaboration [1].

expanding cooperation beyond semiconductors

The association envisions expanding its scope. It aims to include AI, drones, automotive electronics, healthcare, and low-carbon technologies [1]. Kuo affirmed the Ministry of Economic Affairs’ support. This includes policy coordination, technology alignment, cross-border expansion, and market access [1]. Former Japanese Minister of Economy, Trade and Industry, Nishimura highlighted the potential for energy cooperation [4][5]. He mentioned Japan’s advancements in perovskite solar technology and hydrogen energy [5]. He also emphasized the importance of information exchange between Taiwan and Japan [4].

the ‘semiconductor iron triangle’ and geopolitical implications

Nishimura previously advocated for a “semiconductor iron triangle” involving Japan, Taiwan, and the US [4][5]. He emphasized the need to safeguard semiconductor supply chains, particularly against military applications [4]. Taiwan President Lai Ching-te has called for strengthened cooperation with Japan. He aims to counter China’s gray-zone tactics [3]. Nishimura also echoed the sentiment that “Taiwan’s situation is Japan’s situation”. He stressed the need for collaboration among like-minded nations to maintain stability in the region [3].

investment considerations and market outlook

For investors, this collaboration signals a strategic move to mitigate risks associated with potential US tariffs. The alliance leverages the strengths of both economies. It creates a more robust and diversified supply chain. TSMC’s significant investments in the US, totaling $165 billion USD, demonstrate a commitment to the US market [6]. However, the Taiwan-Japan partnership suggests a hedge against over-reliance on any single region [6]. Minister Kuo expressed optimism that Taiwan would negotiate a better result with the U.S. [1][6].

Bronnen

Semiconductor Association Taiwan Japan