Tech giants Hon Hai and SoftBank plan to collaborate in manufacturing data center equipment in Ohio.
The latest development in the Stargate Project, an ambitious global AI infrastructure plan, sees a partnership between Hon Hai Precision Industry Co. (Foxconn) and SoftBank Group Corp. The collaboration will see the production of AI data center equipment in Ohio, with SoftBank acquiring a former electric vehicle factory owned by Hon Hai.
The Lordstown, Ohio factory, previously used for electric vehicle production, has been purchased by SoftBank. Foxconn will operate the site through a joint venture with SoftBank, producing the data center hardware needed to support artificial intelligence infrastructure development in the U.S. as part of the broader Stargate initiative.
This strategic move positions the Mahoning Valley region as a key hub in this large-scale global AI infrastructure initiative. The Ohio site was chosen for its ample space and power availability, critical for hosting AI data center operations.
The Stargate Project, initially announced in January 2025, aims to invest up to $500 billion globally in AI infrastructure. Beyond SoftBank Group Corp., the project involves other investors, as previously mentioned. The joint venture between Hon Hai and SoftBank will be equal, with both companies responsible for designing and making data center equipment.
This new development for the Stargate Project further solidifies its position as a significant player in the AI industry. The collaboration signifies Foxconn's strategic pivot from its traditional smartphone manufacturing base toward the AI server and semiconductor market, aiming to leverage the AI boom for diversification.
The Ohio operation joins other national data center developments, including facilities in Europe like Stargate Norway, to foster next-generation AI technologies by providing the necessary physical compute infrastructure. The acquisition of the factory by SoftBank does not change the equal partnership between Hon Hai and SoftBank in the joint venture.
References:
- The Verge
- Bloomberg
- Reuters
- CNN Business
- The Wall Street Journal
