TOKYO — In a notable shift in cross-border financing, Japan’s three major financial institutions have decided to step back from participating in the upcoming wave of U.S.-bound investments, sources revealed Thursday.

MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC) are making final arrangements to forgo syndicated lending for a massive semiconductor plant construction project. The project has been selected as part of the third batch of Japanese investments in the United States under a prominent bilateral framework.

Funding Constraints and Currency Concerns

The primary catalyst behind this strategic withdrawal is the mounting difficulty Japanese banks face in securing adequate U.S. dollar funding. Under the established bilateral financing framework for these investments, the government-backed Japan Bank for International Cooperation (JBIC) and private-sector commercial banks traditionally co-finance projects at a ratio of one to two. While the private-sector portion is typically insured by Nippon Export and Investment Insurance (NEXI), the sheer scale of capital required has created severe logistical bottlenecks.

With total cumulative Japanese investments in the United States projected to reach an astronomical $550 billion, financial analysts point out that commercial lenders would struggle immensely to raise such vast amounts of dollars independently on international markets. Furthermore, widespread concerns persist that large-scale dollar purchases executed by Japanese institutions could exert downward pressure on the already vulnerable yen, complicating macroeconomic stability.

Evolution Across Investment Batches

The retreat marks a distinct departure from earlier cooperation phases. During the first batch of Japanese investments in the United States—which included funding for a major gas-fired power plant—JBIC and all three megabank lenders successfully extended joint syndicated loans.

However, the strain became evident by the second batch. Financing for a subsequent gas-fired power plant project shifted toward a partnership between JBIC and major U.S. lenders Citigroup and JPMorgan Chase. In response to these widening funding gaps, Japan’s megabank institutions have formally requested government assistance to help secure sustainable dollar liquidity channels.

Focus on the GlobalFoundries Project

The third batch centers on an ambitious initiative: Japan is set to invest up to $21 billion in a high-profile project to construct new manufacturing facilities for U.S. chip foundry giant GlobalFoundries.

With Japan's commercial megabanks sitting this round out, funding for the semiconductor plant is expected to rely primarily on JBIC alongside robust participation from international and foreign financial institutions. As bilateral economic ties continue to deepen, industry watchers will be closely monitoring how Tokyo addresses these structural dollar-funding challenges in future investment waves.

[ⓒ Global Economic Times. 무단전재-재배포 금지]