Taiwan-Japan Synergy: Fukuoka to Host New Trade Center

• Taiwan plans to establish a center in Fukuoka, Japan to promote investment and trade, particularly in semiconductors and AI.
• The center aims to strengthen the Taiwan-Japan semiconductor supply chain and broaden industrial applications in AI, robotics, and drones.
• Taiwan’s role in the global semiconductor supply chain complements Kyushu region’s significance as a chip industry hub in Japan.
• The center is expected to boost economic ties between Taiwan and Japan, and contribute to advancements in AI, robotics, and drones.

In a significant move that underscores the growing synergy between Taiwan and Japan, Taiwan has announced plans to establish a center in Fukuoka, a city located in southwestern Japan. This initiative is aimed at promoting investment and trade between the two nations, particularly in the burgeoning sectors of semiconductors and artificial intelligence (AI). The announcement was made by Taiwan’s Economic Minister, Kuo Jyh-huei, on Tuesday.

The proposed center is not merely a conduit for Taiwanese companies to penetrate the Japanese market. It is envisioned as a platform to bolster the Taiwan-Japan semiconductor supply chain cooperation and to broaden industrial applications in diverse areas such as AI, robotics, and drones. This was revealed by Minister Kuo in his address to a group of Japanese business leaders and governors.

The minister emphasized the complementary nature of the relationship between Taiwan and Japan. Taiwan is a pivotal player in the global semiconductor supply chain, while the Kyushu region, which includes Fukuoka, is a significant chip industry hub in Japan. This symbiotic relationship is expected to be further strengthened with the establishment of the center.

Strengthening Economic Ties and Local Chip Sector

The initiative has been welcomed by Sumio Kuratomi, Chairman of the Kyushu Economic Federation and leader of the delegation. He acknowledged Japan’s efforts to fortify cooperation with Taiwanese companies and expressed his approval of the center, stating that it bolsters the local chip sector.

This development comes on the heels of the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co., commencing mass production at its first factory in Kumamoto Prefecture in Kyushu at the end of last year. The construction of its second factory is slated to begin later this year.

Historical Precedents and Future Implications

This move by Taiwan is reminiscent of similar initiatives in the past where nations have established centers in foreign countries to foster trade and investment. For instance, in 2019, India set up a Japan Plus management team to facilitate investment proposals from Japan. Similarly, the Japan External Trade Organization (JETRO) has established business support centers in various countries to assist Japanese companies in expanding overseas.

The establishment of the center in Fukuoka is a testament to the growing importance of the semiconductor industry, which has seen a surge in demand due to the digital transformation brought about by the COVID-19 pandemic. It also highlights the strategic importance of AI, robotics, and drones, sectors that are expected to drive future growth.