Investing.com-- Japan has proposed purchasing billions of dollars’ worth of U.S. semiconductor products as part of ongoing tariff negotiations with Washington, the Asahi Shimbun reported on Wednesday, citing government sources.

The purchases, potentially totaling hundreds of billions to 1 trillion yen, would be supported by Japanese government subsidies to domestic firms acquiring chips from companies such as NVIDIA (NASDAQ: NVDA ), the report said.

Tokyo aims to use the offer as a “negotiating card” to address the U.S. trade deficit with Japan, which currently stands at approximately 10 trillion yen, the Asahi said.

Nvidia, which commands about 80% of the data center semiconductor market, is a key supplier in the proposal, according to the report.

The plan also includes support for bolstering the U.S.-Japan semiconductor supply chain through domestic production of wafers and chemicals, critical for chip manufacturing. Both countries view these efforts as vital for economic security amid geopolitical tensions and risks tied to overreliance on Taiwanese foundries, the report added.