Japan’s Ministry of Finance has announced plans to establish a new investment facility at the Japan Bank for International Cooperation (JBIC) to support a landmark $550 billion investment package agreed under its recent trade deal with the United States.
The package, detailed in a memorandum of understanding signed earlier this month, will target key strategic sectors including semiconductors, metals, pharmaceuticals, energy, and shipbuilding. The investments are scheduled to run through January 2029, coinciding with the end of U.S. President Donald Trump’s term.
The government said the new facility will provide equity financing, loans, and loan guarantees to help Japanese companies expand overseas in industries considered vital to the country’s long-term economic security. Nippon Export and Investment Insurance (NEXI) will also play a supporting role in backing risk-heavy projects.
In a bid to widen Japan’s reach, the finance ministry has revised regulations on JBIC, expanding its scope of eligible investments in developed countries to include the automotive and pharmaceutical industries. Previously, JBIC’s mandate in advanced economies was restricted to narrower sectors compared to emerging markets.
Officials noted that the move underscores Japan’s determination to secure supply chains, strengthen resilience in critical industries, and deepen economic cooperation with Washington.
Analysts say the facility could also give Japanese firms an edge in the global competition for high-tech manufacturing, particularly in semiconductors and energy, two areas where geopolitical tensions and supply chain disruptions have heightened the urgency for diversified investments.
This $550 billion package marks one of Japan’s most significant international investment commitments to date, reflecting not only economic ambition but also the strategic partnership shaping U.S.-Japan relations.
