Japan and U.S. eye synthetic diamond production under $550 billion plan

Japan is considering building a synthetic diamond plant in the United States as a key project in its $550 billion investment package. The material is essential for chip and high-precision manufacturing. The first projects could be unveiled ahead of Prime Minister Sanae Takaichi's U.S. visit as early as March.

Japan and the United States are exploring a plan to build a synthetic diamond plant in the U.S. as part of efforts to boost production of a material crucial for chip and high-precision manufacturing. This initiative stands out as a prime candidate within Japan's proposed $550 billion investment package aimed at strengthening ties between the allies.

Synthetic diamonds play a vital role in the semiconductor industry and precision engineering. The investment plan comes amid broader U.S.-Japan relations, including discussions on tariffs under the Donald Trump administration. Sources indicate that this project could be among the first to be announced, potentially ahead of Prime Minister Sanae Takaichi's planned visit to the U.S. in March. The sources spoke on condition of anonymity, citing the private nature of the discussions.

This development highlights deepening economic collaboration between the two nations, with potential benefits for their industrial competitiveness in key technologies.

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Presiden Donald Trump bertemu dengan Perdana Menteri Jepang yang baru ditunjuk, Sanae Takaichi, di Tokyo pada hari Selasa, menandatangani kerangka kerja AS-Jepang tentang tanah jarang dan mineral kritis lainnya sambil menyoroti kesepakatan tarif-dan-investasi yang diumumkan sebelumnya. Para pemimpin kemudian berpidato kepada ribuan pasukan AS di atas kapal USS George Washington dan berjanji "era emas" untuk aliansi di tengah ketegangan regional yang meningkat.

Japan and the United States reached a trade deal on July 22, with Japan pledging $550 billion in investments in critical U.S. industries in exchange for lower tariffs on Japanese automobiles and other products. However, the pledge may fall short of President Donald Trump’s expectations and resemble routine business rather than a sweeping commitment.

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The United States and Japan are set to review energy projects as potential initial investments in a landmark $550 billion joint fund from their trade deal. The first panel session is scheduled for Wednesday in Washington, where a couple of energy projects will be considered. These initiatives could be presented to President Donald Trump in 2026.

Jepang telah memulai eksperimen selama lima minggu untuk mengekstrak mineral tanah jarang dari dasar laut dalam di lepas Pulau Minamitorishima, bertujuan mengurangi ketergantungan pada China untuk bahan baku kritis. Proyek ini, di atas kapal penelitian Chikyu, menandai upaya pengumpulan berkepanjangan pertama di kedalaman seperti itu dan menyoroti ketegangan antara keamanan energi dan risiko lingkungan. Pejabat berharap akan mendukung tujuan netralitas karbon Jepang pada 2050 sambil meningkatkan daya saing industri.

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Japan's government is hosting the inaugural Tokyo Economic Security Forum on December 15 in Tokyo. Amid global uncertainties from the US-China trade war and high tariffs under the Trump administration, experts from around the world will discuss securing strategic materials and protecting supply chains. The importance of public-private collaboration is highlighted.

Japan's three megabanks plan to provide loans totaling up to ¥2 trillion in stages from fiscal 2027 to Rapidus, aiming to mass-produce cutting-edge chips. This marks the first private-sector loan to the Japanese chipmaker. Government guarantees will support the effort to bolster the semiconductor sector.

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Prime Minister Sanae Takaichi is considering a visit to the United States in March, her first since taking office in October. The trip would involve talks with U.S. President Donald Trump to coordinate policies toward China ahead of his April summit with Chinese President Xi Jinping. This comes amid intensifying pressure from China over Takaichi's remarks on a potential Taiwan contingency.

 

 

 

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