SoftBank’s Son Envisions a $1 Trillion U.S. AI Hub with TSMC and Trump

SoftBank Group (SFTBY) CEO Masayoshi Son is planning to build a $1 trillion artificial intelligence (AI) hub in the U.S. in collaboration with Taiwan Semiconductor Manufacturing (TSM) and the Trump administration. The project envisions a massive industrial complex in Arizona dedicated to building robots and advancing AI. The news was first reported by Bloomberg, citing people familiar with the matter.

The industrial complex is inspired by a similar manufacturing hub operating in Shenzhen, China. Son proposes that the AI hub will bring high-tech manufacturing capabilities back to the U.S., aligning with the Trump administration’s vision. The project, called “Project Crystal Land,” represents one of Son’s most ambitious investments in the U.S. to date.

Son Leads Make-in-America AI Initiative

The report states that the industrial park could include production lines for AI-powered industrial robots. Son has also been in discussions with the administration, including Secretary of Commerce Howard Lutnick, about offering tax breaks to companies that invest in the industrial hub or build factories there.

Currently, TSMC’s interest in participating in the AI hub as well as its potential role in the project remains unclear. Meanwhile, SoftBank has reportedly approached executives from Samsung Electronics (SSNLF) and other technology companies to gauge their interest in the project. Moreover, Son is said to be considering involving SoftBank Vision Fund portfolio companies in the project by setting up production plants within the industrial hub.

Trump’s Backing Is Key to Son’s Vision

Notably, Project Crystal Land is still in very early stages and much depends on support from both Trump and the Arizona state government. However, if successful, Son is planning to build multiple advanced industrial manufacturing hubs across the U.S.

Interestingly, Son has kept a keen eye on expanding SoftBank’s presence in the U.S. and has aggressive plans for further investment there. The company is already a founding partner in Trump’s multi-billion-dollar Stargate Project, alongside Oracle (ORCL), AI startup OpenAI, and Abu Dhabi’s MGX. Additionally, SoftBank recently led a $40 billion funding round in ChatGPT maker, OpenAI. Year-to-date, SFTBY stock has gained 3.4%.

Is SoftBank Group a Good Stock to Buy?

We used TipRanks’ Technical Analysis Tool to assess the outlook for SFTBY stock. The tool indicates a “Strong Buy” consensus, with 15 indicators showing Bullish signals and five Neutral indicators.

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