The Semiconductor Iron Triangle: Taiwan, Japan, and the US Forge a Tech Alliance

Strengthening Global Supply Chains and Countering China's Tech Ambitions

Taipei, May 6 - A strategic alliance is taking shape in the heart of the global technology landscape. Former Japanese Minister of Economy, Trade and Industry, Yasutoshi Nishimura, has coined the term "semiconductor iron triangle" to describe the growing trilateral cooperation between Japan, Taiwan, and the United States in the critical semiconductor industry.

In an interview, Nishimura highlighted that Taiwan Semiconductor Manufacturing Co. (TSMC)'s presence in both Japan and the U.S. forms the cornerstone of this partnership. TSMC's factory in Kumamoto and the chip fabs being built in Arizona underscore this interconnectedness. According to Nishimura, the Arizona factory is utilizing Japan-made manufacturing devices and materials, showcasing the interwoven nature of the supply chains.

This collaboration is deemed crucial for bolstering global supply chains, particularly in the advanced semiconductor space. Nishimura envisions future collaboration extending to areas such as 5G, self-driving automobiles, and generative artificial intelligence.

Nishimura first presented the idea during a speech to overseas Taiwanese in Japan in April. He emphasized that the three nations need to closely unite to accelerate semiconductor development and jointly address the challenge posed by China, which, according to him, is an "arch enemy that steals semiconductor technology for military use."

As Minister of Economy, Trade and Industry from 2022-2023, Nishimura was a key driver of bilateral cooperation between Japan and Taiwan in the semiconductor sector. Beyond semiconductors, he also proposed closer Tokyo-Taipei exchanges in the energy sector, focusing on renewable energy initiatives. He noted that while Taiwan is phasing out nuclear energy, cooperation in renewable resources like solar, wind, hydrogen energy, and storage batteries remains a viable path forward.

Nishimura's visit to Taiwan included meetings with President Lai Ching-te (賴清德) and Vice President Hsiao Bi-khim (蕭美琴). He led a five-member parliamentary delegation from Japan's ruling Liberal Democratic Party (LDP), also including Kosaburo Nishime, Kazuo Yana, Hajime Sasaki, and Ryusho Kato.