Regarding the New York semiconductor plant project announced by U.S. President Donald Trump on the 14th (local time) as part of Japan's new investment in the U.S., the Japanese government explained on the 15th that the two countries aim to build a supply chain in the semiconductor sector.

In a press release issued that day, Japan's Ministry of Foreign Affairs stated, "Through this project, which is the first semiconductor-related initiative under the U.S.-Japan investment agreement, we aim to build a resilient supply chain in the semiconductor sector, which is strategically important from an economic security perspective."

The ministry added that the two countries intend to expand production capacity for mature-node semiconductors used in various fields such as automobiles, industrial machinery, smartphones, and AI data centers.

Mature-node processes contrast with advanced-node processes and generally refer to manufacturing technologies that produce older, established semiconductors with stable yields, typically at 28 nanometers (nm, one-billionth of a meter) or larger.

President Trump announced the investment agreement with Japan in the semiconductor sector in a post on Truth Social on the 14th (local time).

He stated, "Today, under my leadership, GlobalFoundries and the Department of Commerce, led by Secretary Howard Lutnick, announced a massive USD 21.0 billion (approx. 28.2 trillion won) investment to build two massive new semiconductor manufacturing facilities in Malta, New York."

Explaining that the project will create 27,000 high-paying construction and supply chain jobs and over 1,000 high-skilled manufacturing jobs in New York State, he emphasized, "Under my direction, Japan will provide the funding required for this USD 21.0 billion investment."

The semiconductor plant, for which President Trump announced Japan's investment, is expected to produce "logic semiconductors" responsible for artificial intelligence (AI) computations and supply them to the automotive industry and other sectors.

Yomiuri Shimbun, NHK, and other media outlets reported that the new semiconductor plant in New York State, to be established by U.S. contract chipmaker GlobalFoundries in cooperation with Japanese companies, is expected to manufacture logic semiconductors for communications and automobiles and supply them to Japanese automakers with production bases in the United States.

Logic semiconductors are system (non-memory) semiconductors that perform logical commands and processing such as computation, judgment, and control, rather than memory semiconductors responsible for data storage or retention.

The investment funds are expected to be financed through loans from major Japanese banks, including the Japan Bank for International Cooperation (JBIC).

Of the two plant buildings to be constructed through this investment, the first is reportedly aiming to break ground within the year and begin production by 2029.

Major Japanese semiconductor manufacturing equipment companies Tokyo Electron and Renesas Electronics are reportedly scheduled to participate in the semiconductor plant construction project.

Renesas Electronics announced last February that it would jointly manufacture next-generation automotive semiconductors with GlobalFoundries.

Among the projects totaling up to USD 550 billion (approx. 738 trillion won) that Japan has agreed to invest in the U.S., the two countries had announced six projects, including the construction of next-generation nuclear reactors and natural gas power plants, prior to the semiconductor plant announcement.

Aside from the newly announced semiconductor plant plan, the total amount agreed upon by Japan and the U.S. in investment and financial support stands at USD 109 billion (approx. 146 trillion won), which is about 20% of the overall plan.

Yomiuri reported that multiple additional projects have been proposed by the U.S. side and that the governments of the U.S. and Japan are continuing discussions to reach agreements.

In addition to Japan's investment, President Trump stated that South Korea has decided to invest USD 50 billion (approx. 67 trillion won) in the Alaska liquefied natural gas (LNG) development project and that Taiwan has committed to purchasing USD 70 billion to USD 80 billion worth of Alaska LNG.