Taipei: Taiwan’s Economics Minister Kung Ming-hsin has called for enhanced cooperation with Japan in artificial intelligence, green energy, and national defense. The call comes as global supply chains strive to decrease their reliance on China.

According to Focus Taiwan, Kung made these remarks at a Taiwan-Japan investment cooperation forum in Taipei. He highlighted the longstanding economic relationship between the two nations and emphasized the importance of expanding their cooperation amidst a global shift towards a “non-China” supply chain.

Kung pointed out that Japan’s initial contributions in capital and advanced electronics played a crucial role in establishing Taiwan’s semiconductor industry. However, Taiwanese companies have recently begun expanding internationally, exemplified by Taiwan Semiconductor Manufacturing Co.’s decision to establish a major production site in Kumamoto, Japan. This indicates a transition from one-way investment to mutual development.

The first TSMC facility in Kumamoto started commercial production at the end of 2024, with a second facility currently under construction. As Japanese companies reduce their operations in China, Kung suggested that Taiwan and Japan, with their complementary economies, should enhance their collaboration in AI, renewable energy, and defense.

He noted that computing power is increasingly seen as a national asset, driving countries to invest in data centers. Japan’s efforts in developing the Innovative Optical and Wireless Network and all-optical communications align with Taiwan’s AI innovation goals.

In green energy, Japanese companies have played a role in Taiwan’s solar and offshore wind power initiatives, while Taiwanese firms have partnered with Japanese counterparts in wind projects in Japan, showcasing their deepening bilateral relationship.

Kung also mentioned President Lai Ching-te’s plans to bolster Taiwan’s defense industry, including a proposed NT$1.25 trillion special budget. This, he believes, opens up significant opportunities for collaboration with Japan in national defense.