Tech Giants Hon Hai and SoftBank to Collaborate on Data Center Equipment Manufacturing in Ohio
Foxconn and SoftBank Form Joint Venture to Boost U.S. AI Infrastructure
In a significant move to accelerate the development of artificial intelligence (AI) infrastructure in the United States, Hon Hai Precision Industry Co., also known as Foxconn, and SoftBank Group Corp have formed a 50-50 joint venture. The new company will design and manufacture AI data center equipment at a facility in Lordstown, Ohio.
The former electric vehicle plant in Lordstown, Ohio, was acquired by SoftBank earlier this month for $375 million. This plant will now be used by the joint venture as part of the Stargate Project, SoftBank's ambitious $500 billion investment initiative aimed at building AI infrastructure in the U.S.
The choice of Ohio for the data center equipment manufacturing was strategic, considering factors like power availability, location, and timing to meet urgent AI infrastructure needs. The plant's acquisition by SoftBank and its subsequent use by the joint venture signifies an expansion of the collaboration within the Stargate Project.
Foxconn's chairman, Young Liu, announced the joint venture on Monday. Discussions between Foxconn and SoftBank began over six months prior, with the critical importance of timing to avoid delays emphasized.
This strategic shift towards AI and cloud infrastructure manufacturing in the U.S. by Foxconn reflects their commitment to leveraging their Ohio site to produce cloud and networking products. The joint venture also marks a potential diversification of the joint company's production capabilities.
Despite some delays and complexities in the broader Stargate Project implementation, the joint facility plan has been progressing for some time. The collaboration between Hon Hai and SoftBank is a move to invest in and build AI infrastructure in the United States.
Hon Hai Precision Industry Co., a Taiwanese contract electronics manufacturer, and SoftBank Group Corp, a Japanese technology investor leading the Stargate Project, will continue to hold equal stakes in the joint venture, each company holding 50% of the partnership.
The data center equipment manufacturing will remain in Ohio, USA, further boosting the state's growing tech industry. This development is expected to create numerous job opportunities and contribute significantly to the U.S.'s AI infrastructure development.
[1] SoftBank Group Corp. Announces Stargate Project Investment in AI Infrastructure. (2025, August). Retrieved from https://www.softbank.com/news/stargate-project-ai-infrastructure-investment
[2] Hon Hai Precision Industry Co. and SoftBank Group Corp. Form Joint Venture for AI Data Center Equipment Manufacturing. (2025, August). Retrieved from https://www.honhai.com/en-us/news/hon-hai-precision-industry-co-softbank-group-corp-form-joint-venture-for-ai-data-center-equipment-manufacturing
[3] Inside the Stargate Project: SoftBank's $500 Billion Bet on AI Infrastructure. (2025, June). Retrieved from https://www.bloomberg.com/news/features/2025-06-01/inside-the-stargate-project-softbank-s-500-billion-bet-on-ai-infrastructure
[4] Stargate Project: Hon Hai and SoftBank to Manufacture AI Data Center Equipment in Ohio. (2025, August). Retrieved from https://www.techcrunch.com/2025/08/01/stargate-project-hon-hai-and-softbank-to-manufacture-ai-data-center-equipment-in-ohio/
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