Step 1: Write the equation of tangent.
Given curve:
\[
xy=a^2
\]
At the point
\[
(x_1,y_1),
\]
we have
\[
x_1y_1=a^2
\]
The equation of tangent to
\[
xy=a^2
\]
at \((x_1,y_1)\) is
\[
xy_1+yx_1=2a^2
\]
Step 2: Find the intercepts on the axes.
To find the \(x\)-intercept, put
\[
y=0
\]
Then,
\[
xy_1=2a^2
\]
\[
x=\frac{2a^2}{y_1}
\]
Since
\[
a^2=x_1y_1,
\]
we get
\[
x=\frac{2x_1y_1}{y_1}
\]
\[
x=2x_1
\]
Thus, the tangent cuts the \(x\)-axis at
\[
(2x_1,0)
\]
Now, to find the \(y\)-intercept, put
\[
x=0
\]
Then,
\[
yx_1=2a^2
\]
\[
y=\frac{2a^2}{x_1}
\]
Using
\[
a^2=x_1y_1,
\]
we get
\[
y=\frac{2x_1y_1}{x_1}
\]
\[
y=2y_1
\]
Thus, the tangent cuts the \(y\)-axis at
\[
(0,2y_1)
\]
Step 3: Find the area of the triangle.
Area of triangle formed with coordinate axes is
\[
\frac{1}{2}\times (\text{\(x\)-intercept}) \times (\text{\(y\)-intercept})
\]
Therefore,
\[
\text{Area}
=
\frac{1}{2}\times (2x_1)\times (2y_1)
\]
\[
=2x_1y_1
\]
Since
\[
x_1y_1=a^2,
\]
we get
\[
\text{Area}=2a^2
\]
Step 4: Final conclusion.
Therefore,
\[
\boxed{2a^2}
\]
sq. units