Foxconn and SoftBank Join Forces to Build AI Equipment in Ohio Plant

Foxconn and SoftBank are partnering to build data center equipment at Foxconn's former EV plant in Lordstown, Ohio, marking a shift in focus from EVs to AI. The joint venture will plug into Project Stargate, a $500 billion plan to invest in AI infrastructure by 2029. Foxconn will assemble servers and gear, while SoftBank takes the financial lead, OpenAI sets training needs, and Oracle scales its cloud services.

Foxconn and SoftBank have announced a strategic partnership to manufacture AI data center equipment at Foxconn's former electric vehicle (EV) plant in Lordstown, Ohio. This move signifies a shift in focus from electric vehicles to artificial intelligence (AI) and aligns with SoftBank's ambitious $500 billion Stargate project aimed at investing in AI infrastructure by 2029.

Foxconn, the world's largest supplier of AI servers, will continue to operate the 6.2 million square foot facility, which was originally acquired from Lordstown Motors in 2022 for EV production. The facility will be retrofitted for AI server production, with Foxconn leveraging its expertise in manufacturing. SoftBank will supply manufacturing gear and the two companies will form a joint venture to make AI data center-related equipment [2].

The collaboration is part of SoftBank's broader Stargate initiative, a joint venture with OpenAI and Oracle. The project, first announced in January 2025, aims to advance U.S. AI infrastructure by investing in data centers, energy facilities, and related projects. SoftBank's founder Masayoshi Son pledged to allocate $100 billion immediately towards these endeavors [1].

Despite initial setbacks, including U.S. tariffs and the rise of cheaper AI alternatives, SoftBank denies that access to funding is a problem for Stargate. The Ohio facility's transformation into an AI server production plant positions it as a potential flagship site for the Stargate project, considering factors such as energy supply, water resources, and telecommunications infrastructure [3].

Foxconn's role in this partnership is crucial, as it sees this as an opportunity to expand its capacity in the United States. The company is also building up operations in Houston, Texas, to produce AI machines and other data center gear in partnership with Nvidia [2].

The Ohio complex could become the first manufacturing base linked directly to Stargate, exclusively producing infrastructure components for SoftBank, Oracle, and OpenAI. This arrangement almost guarantees a steady flow of orders for Foxconn, further solidifying its position in the AI hardware market.

As the Stargate project moves forward, it has the potential to reshape the landscape of AI infrastructure in the United States. The collaboration between SoftBank and Foxconn represents a significant step in realizing Masayoshi Son's ambition to be at the center of surging investment in AI hardware.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-18/foxconn-to-operate-softbank-s-stargate-ai-server-site-in-ohio
[2] https://theoutpost.ai/news-story/soft-bank-acquires-foxconn-s-ohio-facility-for-375-million-to-manufacture-ai-servers-for-stargate-project-19171/
[3] https://www.wfmj.com/story/53011784/update-softbank-foxconn-to-manufacture-ai-data-center-equipment-in-lordstown-in-new-partnership