Japan will invest $550bn in the US to support semiconductor companies in return for lower tariffs on exports.

Japan's $550 billion investment package aims to help Taiwanese companies such as TSMC build semiconductor factories in the US. The initiative was agreed as part of a deal with the US that includes loans and guarantees. Although Japan was hoping for a fairer share of the profits, the US will keep 90% of them. The deal could avoid tariffs of about $67.7 billion for Japan.