WASHINGTON — The United States and Japan are in advanced talks to build a semiconductor factory as part of a $550 billion investment aimed at shoring up supply chains against Chinese competition and geopolitical risk.
Senior officials from the U.S. Department of Commerce and Japan's Ministry of Economy, Trade and Industry are leading negotiations. The factory would be one piece of a broader investment spanning artificial intelligence, quantum computing and biotech research.
The push reflects President Trump's broader effort to bring critical manufacturing back to the U.S. and relies heavily on the CHIPS and Science Act, which allocates billions in subsidies to domestic chip makers. Japan similarly wants to rebuild its position in advanced semiconductors after decades of lost ground to South Korea and Taiwan.
Both countries are discussing potential U.S. and Japanese sites for the facility. Negotiations include specific financial incentives—tax breaks and direct subsidies—as well as intellectual property protections for companies involved. A joint task force was established to accelerate talks.
The factory is expected to create tens of thousands of engineering and advanced manufacturing jobs. A formal agreement on the investment structure is anticipated by year's end following additional bilateral meetings.
