Taiwan and Japan are deepening tech and trade ties, positioning themselves as an alternative to China-based supply chains — good news for chipmakers and for both economies, and a fresh irritant for Beijing.

• President Lai Ching-te told a visiting delegation from Kanagawa Prefecture that Taiwan's chip and AI strengths plus Japan's research and precision manufacturing can build a safer supply chain that leaves China out.
• Trade between the two hit $84.85 billion last year, up 17%, with electronics and machine parts leading the way.
• TSMC has a design center in Kanagawa, 13 Taiwanese firms including ASE have set up there, and 78 Kanagawa companies including Nissan invest in Taiwan.
• The delegation credited TSMC's arrival with lifting the economy in Kyushu and across Japan, and pointed to disaster-relief goodwill after the Kumamoto earthquake.
• Both sides floated more cooperation ahead: a sister hot-springs pact between Hakone and Beitou, Taiwanese participation in Yokohama's international garden expo next March, and future work in space and quantum tech.

Outlook: Expect more Taiwan-Japan tie-ups in chips and advanced tech, with the Yokohama expo the next public showcase.