Japan is moving forward with a $550 billion investment initiative with the US, with projects in artificial intelligence and semiconductors expected to take center stage in the next phase of the agreement, Bloomberg reports.
Trade Minister Ryosei Akazawa said the two countries will continue to closely cooperate on the investment mechanism following talks in Washington with US Commerce Secretary Howard Lutnick and US Trade Representative Jamison Greer.
Akazawa declined to disclose details about the third tranche of projects under the pact. He said discussions in AI and semiconductors will carry “very significant weight” as both governments prioritize investments that bring mutual economic benefits.
The $550 billion fund was created as a key element of the US-Japan trade agreement concluded last year. In exchange, the Trump administration agreed to cap tariffs on Japanese goods at 15% and reduce duties on automobiles, an industry that remains critical to Japan’s export-driven economy.
The first round of projects allocated $36 billion to the American oil, gas, and critical minerals industries, including the construction of a natural gas facility in Ohio.
The second package expanded the initiative, allocating $73 billion for nuclear energy projects in Tennessee and Alabama, as well as for the construction of gas-fired power plants in Pennsylvania and Texas.
Akazawa also reported that both sides confirmed that no additional tariffs on Japanese goods beyond the terms of last year’s agreement would be imposed, providing greater certainty for Japanese manufacturers and investors.
The minister’s comments suggest that future investment announcements are likely to increasingly focus on strategic sectors—especially AI infrastructure and semiconductor supply chains—as industrial cooperation between Tokyo and Washington deepens.
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