Taiwan urges cooperation with Japan in AI, green energy, national defense

Taipei, Dec. 2 (CNA) Economics Minister Kung Ming-hsin (龔明鑫) on Tuesday called for deeper cooperation between Taiwan and Japan in artificial intelligence, green energy and national defense at a time when global supply chains are accelerating efforts to reduce their reliance on China.

Speaking at a Taiwan-Japan investment cooperation forum in Taipei, Kung said the two economies have long maintained close economic ties, and that the ongoing push to build a "non-China" supply chain highlights the need for the two sides to expand cooperation.

Kung said that in the early stages of economic cooperation, Japan leveraged its capital and advanced electronics technologies to provide Taiwan with investment, raw materials and equipment, helping lay the foundation for Taiwan's semiconductor ecosystem.

In recent years, however, Taiwanese companies have increasingly expanded abroad, he said, noting that contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) chose Kumamoto, Japan, as one of its major overseas production sites. This shift, he added, reflects a move from one-way investment to two-way development.

TSMC's first Kumamoto fab began commercial production at the end of 2024, and construction of the second facility is underway.

As some Japanese enterprises scale back operations in China, Kung suggested that Taiwan and Japan -- whose economies are highly complementary -- should seize the opportunity to strengthen cooperation in AI, renewable energy and national defense.

In terms of AI, Kung said computing power has increasingly become a form of national strength, prompting countries to invest heavily in data centers. Japan's push for the Innovative Optical and Wireless Network (IOWN) platform and all-optical communications aligns closely with Taiwan's ambitions to boost AI innovation, he said.

On green energy, Kung said Japanese firms have supported Taiwan's development of solar and offshore wind power, while Taiwanese firms have also joined Japanese partners in offshore wind projects in Japan - demonstrating the deepening two-way relationship.

Kung added that with President Lai Ching-te (賴清德) announcing plans to strengthen Taiwan's defense industry, including a proposed NT$1.25 trillion (US$39.76 billion) special budget, he believes there will be significant opportunities for Taiwan and Japan to collaborate in the national defense sector.