SoftBank founder wants to team up with TSMC on trillion-dollar AI hub in Arizona

The founder of Japanese investment holding company SoftBank Group Corp. wants to team up with Taiwan Semiconductor Manufacturing Co. (TSMC) to develop a trillion-dollar industrial robotics and AI industrial complex in Arizona, Bloomberg reported Thursday.

The big picture: SoftBank's billionaire founder, Masayoshi Son, is eyeing a plan, dubbed "Project Crystal Land," that could house production lines for AI-powered industrial robots, Bloomberg reported.

• It's unclear what role Son plans for TSMC, but SoftBank officials "are keen to have the Taiwanese maker of Nvidia Corp.'s advanced AI chips play a prominent role in the project."
• Son has compiled a list of other companies that could take part.
• He envisions something akin to China's Shenzhen economic zone to potentially bring high-tech manufacturing jobs back to the U.S.

Yes, but: It remains unclear whether TSMC would be interested, per Bloomberg.

Zoom in: The plans will largely hinge on potential support from the Trump administration and Arizona officials, and the scale would depend on interest from other Big Tech companies.

• SoftBank officials have spoken with federal and state leaders, including U.S. Commerce Secretary Howard Lutnick, about tax breaks for companies that would build factories or invest in the industrial park, Bloomberg reported.

Context: TSMC, which already has begun manufacturing microchips at its massive plant in north Phoenix, announced last month it's increasing its investment in the facility to $165 billion.

• TSMC expects to produce 30% of its most advanced chips in Arizona when all six planned plants are operational.