Can we all agree TSMC advanced microprocessor technology is at stake?

Editor's note: Here's the political cover news story: China has sharply condemned new Japanese Prime Minister Sanae Takaichi following her recent remarks in parliament suggesting that a Chinese military strike on Taiwan could amount to an existential threat to Japan—potentially triggering a Japanese military response under its collective self-defense rules. Beijing's foreign ministry called the comments "egregious interference" in its internal affairs and warned that Japan would "bear all consequences" should it intervene. China's ambassador in Tokyo lodged a formal protest, accusing Takaichi of crossing Beijing's red lines and violating the "one-China" principle. What we are seeing in Japan-China relations despite all the militaristic threats is a tug of war over Taiwan's TSMC microprocessor technology. Japan will require TSMC's advanced microprocessor technology to develop its own advanced weapon systems including its latests railgun deployment and long range precision guided missiles. If Japan's Mitsubishi Heavy Industries (MHI) were using TSMC-fabricated microprocessors in missile guidance, radar, EW systems, or command-and-control architectures, that information would absolutely fall under Japan's defense secrecy regime and would not appear on any open sources.
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Japan Deepens Semiconductor Ties With TSMC, Reshaping Regional Tech and Diplomatic Dynamics

November 19, 2025 | By AD News

TOKYO — Japan's partnership with Taiwan Semiconductor Manufacturing Company (TSMC) is rapidly transforming both the country's semiconductor ambitions and the geopolitical balance in Northeast Asia. With the first TSMC-operated fab in Kumamoto now in production and a second facility scheduled to break ground in 2025, Tokyo has moved semiconductor manufacturing to the center of its industrial and national-security strategy.

The flagship facility, operated by Japan Advanced Semiconductor Manufacturing (JASM), is majority-owned by TSMC with minority stakes held by Sony Semiconductor Solutions, Denso, and Toyota. The plant focuses on mature and specialty chips used in automobiles, sensors, industrial equipment, and consumer electronics—components that Japanese manufacturers have struggled to secure since the global shortages of 2020–2022.

To anchor the project, the Japanese government has committed several hundred billion yen in subsidies, part of a wider ¥3.9 trillion semiconductor support program. The scale of the investment reflects Japan's push to rebuild domestic chip capacity after decades of decline and to reduce reliance on offshore fabrication concentrated in Taiwan.

A second fab—also led by JASM—is planned for Kumamoto, with expanded production lines designed to support the automotive, robotics, and electronics sectors. Toyota and Denso's participation ensures long-term supply agreements for critical microcontrollers and power-management chips central to next-generation vehicles and factory automation systems.

But the partnership carries geopolitical implications. As Japan strengthens industrial ties with a Taiwanese chip giant, it moves deeper into a technology network that Beijing views as strategically sensitive. China has increasingly framed semiconductor cooperation between Japan, Taiwan, and the United States as part of a broader containment effort. Analysts warn that Japan’s expanded role in Taiwan-linked semiconductor production could invite diplomatic friction or targeted economic pressure from Beijing during future political flashpoints.

Tokyo, for its part, has framed the initiative as an economic-security measure rather than a political alignment. Officials argue that diversified semiconductor supply is essential not only for industry but also for national resilience, especially as Japan modernizes its defense capabilities and expands domestic production of advanced electronics.

Industry executives say the benefits outweigh the risks. With the Kumamoto fabs, Japan secures a stable local source of key components, strengthens its manufacturing base, and positions itself as a reliable partner within the global semiconductor supply chain. The challenge ahead will be balancing those gains with managing a complex and increasingly competitive regional environment.

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Japan Crosses China's Red Line on Taiwan | Dr. Joanna Lei:

Brace yourselves especially if you are Japanese because inflation (theft) is going to continue if not get worse than it already is in Japan. $110 billion of money creation is a huge chunk of money:

Japan considering stimulus package sized around 17 trln yen, Nikkei says