Taiwan Semiconductor 'At The Heart of New US-Japan-Taiwan' Chip Alliance, Former Japanese Minister Says

Taiwan, Japan, and the U.S. are establishing closer trilateral cooperation in the semiconductor industry, forming a “semiconductor iron triangle,” the Taiwan Times reported Tuesday, citing former Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura.

Nishimura, a current member of the lower house of the Japanese Diet, visited Taiwan on Monday.

Taiwan Semiconductor Manufacturing Co.’s TSM presence in Japan and the U.S. prompted the minister to use the phrase “semiconductor iron triangle.”

Also Read: TSMC Analyst Sees AI, Advanced Nodes Driving Growth In 2025

The Taiwanese contract chipmaker’s Arizona factory uses Japan-made manufacturing devices and materials, he told the Taipei Times.

He expects the collaboration in advanced chips to help the countries develop 5G, self-driving vehicles, and generative artificial intelligence.

He also proposed closer Taipei-Tokyo exchanges in the energy sector.

In an April speech in Japan, Nishimura emphasized the collaboration of Taiwan, Japan, and the U.S. to counter China’s alleged theft of semiconductor technology for military use.

Taiwan Semiconductor bagged 62.5 billion New Taiwan dollars ($1.95 billion) in subsidies from China and Japan since 2022. In the first half of 2024, Taiwan Semiconductor won 7.96 billion New Taiwan dollars in subsidies from China and Japan after receiving 47.55 billion New Taiwan dollars in 2023 and obtaining 7.05 billion New Taiwan dollars in 2022.

According to TrendForce, Taiwan commanded 67% of the global market share in contracted semiconductor manufacturing and nearly 80% in cutting-edge products in 2023.

Cathay Futures Consultant Tsai Ming-han told Focus Taiwan that Taiwan Semiconductor attracted strong buying, backed by the artificial intelligence frenzy, which significantly boosted the Taiex, the weighted index on the Taiwan Stock Exchange (TWSE).

Taiwan Semiconductor stock declined close to 13% year-to-date, fueled by Trump administration tariff woes and the sustainability of artificial intelligence investment after Chinese AI startups like DeepSeek claimed to offer competitive artificial intelligence models at a fraction of the cost.

Morgan Stanley returned to Taiwan Semiconductor Manufacturing as a top pick, citing strong AI-driven capital spending from Big Tech firms, including Meta Platforms Inc. META and Microsoft Corp MSFT.

Price Action: TSM stock is down 1.81% to $173.11 at last check on Tuesday.

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