SoftBank Acquires Foxconn's Ohio Facility for $375 Million to Manufacture AI Servers for Stargate Project

SoftBank acquires Foxconn's Ohio facility to build Stargate AI servers -- $375 million deal says Foxconn will continue to operate the plant

Foxconn on Monday confirmed that it sold its production facility in Lordstown, Ohio, earlier this month to SoftBank, reports Nikkei. Under the terms of the deal, Foxconn will continue to operate the plant, which will be retrofitted to build AI servers and other gear to equip Stargate AI data centers. The Lordstown, Ohio, site was originally acquired by Foxconn from Lordstown Motors in 2022 and used for electric vehicle production. The complex spans 6.2 million square feet and is six times larger than Foxconn's Houston facility, which is also being expanded to build AI servers. The plant has production facilities (albeit these will have to be changed to build AI servers) and loads of power capacity, which will be required for large-scale manufacturing operations. Foxconn got $375 million for the plant and the land, according to Reuters. Foxconn Chairman Young Liu explained that the arrangement with SoftBank has been in preparation for over six months. The decision was driven by available power capacity, large land area for further expansion, and urgency to move quickly on the Stargate schedule, which aims to build $500 billion AI infrastructure over the next several years. Foxconn is already the world's largest supplier of AI servers and is increasing its capacity in multiple regions. In the United States, it is building up operations in Houston, Texas, where it plans to produce AI machines and other data center gear in partnership with Nvidia. The company is also maintaining activities in California and Mexico, serving dozens of clients. The new Ohio base will become another important production center in its network. The Ohio complex could become the first manufacturing base linked directly to Stargate and exclusively producing infrastructure components used by SoftBank, Oracle, and OpenAI, which almost guarantees a steady flow of orders. SoftBank is currently evaluating multiple locations for data centers, considering factors such as energy supply, water resources, and telecommunications infrastructure, reports Bloomberg. As soon as SoftBank finds places for its AI data centers, it will be able to equip them with machines produced at the Lordstown, Ohio, facility. The Stargate project was introduced in January by OpenAI, Oracle, and SoftBank in the presence of U.S. President Donald Trump. Back then, Masayoshi Son, the head of SoftBank, pledged to allocate $100 billion immediately toward data centers, energy facilities, and related projects. However, progress has slowed due to various factors, including U.S. tariff policy and obstacles to building viable financing models, according to Bloomberg. SoftBank denies that access to funding is a problem.

Foxconn to Operate SoftBank's Stargate AI Server Site in Ohio

Hon Hai Precision Industry Co. will operate a US factory owned by SoftBank Group Corp., setting up what's in the running to be the first manufacturing site in the Japanese company's $500 billion Stargate venture with OpenAI and Oracle Corp. SoftBank is acquiring Hon Hai's electric-vehicle plant in Ohio but the Taiwanese company will continue to run the complex after turning it into an AI server production plant, Hon Hai Chairman Young Liu said, confirming a Bloomberg News report. SoftBank will supply manufacturing gear to the factory, and a joint venture between the two companies will make AI data center-related equipment, Liu said.

Foxconn and SoftBank to make data centre equipment in Ohio for Stargate project

TAIPEI, Aug 18 (Reuters) - Foxconn's (2317.TW), opens new tab said on Monday it plans to manufacture data centre equipment with Japan's SoftBank (9984.T), opens new tab at the Taiwanese firm's former electric vehicle factory in Ohio, part of the Stargate project to advance U.S. artificial intelligence infrastructure. Softbank has purchased the Lordstown site, Foxconn Chairman Young Liu told reporters, adding that Foxconn will continue operating the site via a venture the two companies will set up. Foxconn said earlier this month it had struck a deal to sell the factory and its machinery for $375 million, without naming the buyer. Stargate is a joint venture between SoftBank, ChatGPT's creator OpenAI and Oracle (ORCL.N), opens new tab. The project was announced by U.S. President Donald Trump in January, who said that the companies would invest up to $500 billion. SoftBank did not immediately respond to a request for comment. SoftBank and Foxconn started preparatory work for the project more than half a year ago, Young added. "We understand that for this project, the first priorities are power, venue, and timing -- it cannot be delayed for too long. Taking all these factors into account, we believe Ohio is a very suitable location, and SoftBank shares this view," he said. Reporting by Wen-Yee Lee; Additional reporting by Anton Bridge in Tokyo; Writing by Brenda Goh; Editing by Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles., opens new tab

Foxconn to operate SoftBank's Stargate AI server site in Ohio

Hon Hai Precision Industry Co. will operate a U.S. factory owned by SoftBank Group Corp., setting up what's in the running to be the first manufacturing site in the Japanese company's $500 billion Stargate venture with OpenAI and Oracle Corp. SoftBank is acquiring Hon Hai's electric-vehicle plant in Ohio but the Taiwanese company will continue to run the complex after turning it into an AI server production plant, Hon Hai Chairman Young Liu said, confirming a report. SoftBank will supply manufacturing gear to the factory, and a joint venture between the two companies will make AI data center-related equipment, Liu said. SoftBank is scouting a number of potential data center sites to serve as a flagship for Stargate, weighing their access to water, power and telecom networks. Hon Hai's participation represents a boon for SoftBank founder Masayoshi Son's ambition to be at the center of surging investment in artificial intelligence hardware. Hon Hai -- known also as Foxconn -- assembles Apple iPhones and Nvidia servers. In January, when U.S. President Donald Trump first unveiled Stargate, Son stood beside him and promised to deploy $100 billion "immediately" into data centers, electricity generation and other infrastructure to support AI. But the Stargate rollout stalled after economic risks stemming from U.S. tariffs and the rise of cheaper AI alternatives such as DeepSeek made it harder to create the pricing models to secure project financing, it was reported in May. SoftBank has denied that financing has been an issue for Stargate.

Foxconn and SoftBank to make data centre equipment in Ohio for Stargate project

TAIPEI (Reuters) -Foxconn's said on Monday it plans to manufacture data centre equipment with Japan's SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio, part of the Stargate project to advance U.S. artificial intelligence infrastructure. Softbank has purchased the Lordstown site, Foxconn Chairman Young Liu told reporters, adding that Foxconn will continue operating the site via a venture the two companies will set up. Foxconn said earlier this month it had struck a deal to sell the factory and its machinery for $375 million, without naming the buyer. Stargate is a joint venture between SoftBank, ChatGPT's creator OpenAI and Oracle. The project was announced by U.S. President Donald Trump in January, who said that the companies would invest up to $500 billion. SoftBank did not immediately respond to a request for comment. SoftBank and Foxconn started preparatory work for the project more than half a year ago, Young added. "We understand that for this project, the first priorities are power, venue, and timing -- it cannot be delayed for too long. Taking all these factors into account, we believe Ohio is a very suitable location, and SoftBank shares this view," he said. (Reporting by Wen-Yee Lee; Additional reporting by Anton Bridge in Tokyo; Writing by Brenda Goh; Editing by Edwina Gibbs)