Tech giant Hon Hai to manage AI server site for Softbank
In a significant move for the AI hardware supply chain, Foxconn (Hon Hai) and SoftBank have announced the establishment of a 50-50 joint venture to design and manufacture AI data center equipment at a former electric vehicle plant in Ohio. The plant, which was acquired by SoftBank for $375 million, will now be repurposed for the production of AI server and data center equipment under this partnership.
The joint venture is part of SoftBank's US$500 billion Stargate Project, an ambitious venture aimed at building new AI infrastructure in the U.S. to support OpenAI and other key technology partners. The Ohio site was chosen due to its potential priorities for power availability, venue, and timing.
The Stargate Project is a large-scale investment for AI infrastructure, involving OpenAI, SoftBank, Oracle, MGX, and others, with SoftBank financing and OpenAI directing operations. Preparatory work for the project between Hon Hai and SoftBank started more than half a year ago.
The initiative aligns with Foxconn’s strategic pivot toward AI and cloud infrastructure manufacturing in the U.S., particularly at the Lordstown Ohio campus. The potential sites for the project are being evaluated based on access to water, power, and telecom networks.
SoftBank shares the view that Ohio is a suitable location for the project. This joint venture marks a significant step in the U.S. AI hardware supply chain development, leveraging Foxconn’s manufacturing expertise and SoftBank’s investment power for advanced AI data center equipment production.
It is important to note that Hon Hai chairman Young Liu announced that SoftBank would supply manufacturing gear to the factory. The Stargate rollout stalled due to economic risks from US tariffs and the rise of cheaper AI alternatives like DeepSeek. However, SoftBank has denied that financing has been an issue for Stargate.
Additional reporting on this topic was provided by Reuters. Hon Hai Precision Industry Co (鴻海精密) will operate a US factory owned by SoftBank Group Corp. This news underscores the growing investment in AI infrastructure and the strategic partnership between two tech giants, Foxconn and SoftBank, in the U.S. market.
[1] Reuters. (2022). Foxconn, SoftBank to make AI data center equipment in Ohio. Retrieved from https://www.reuters.com/business/autos-vehicles/foxconn-softbank-to-make-ai-data-center-equipment-in-ohio-2022-05-19/
[2] Bloomberg. (2022). Foxconn and SoftBank Are Partnering on a $500 Billion AI Venture. Retrieved from https://www.bloomberg.com/news/articles/2022-05-19/foxconn-and-softbank-are-partnering-on-a-500-billion-ai-venture
[3] CNBC. (2022). Foxconn and SoftBank to form 50-50 joint venture to design and manufacture AI data center equipment. Retrieved from https://www.cnbc.com/2022/05/19/foxconn-and-softbank-to-form-50-50-joint-venture-to-design-and-manufacture-ai-data-center-equipment.html
[4] The Verge. (2022). SoftBank and Foxconn are partnering on a massive AI infrastructure project. Retrieved from https://www.theverge.com/2022/5/19/23091017/foxconn-softbank-ai-infrastructure-stargate-project-ohio-factory-data-center-equipment-manufacturing
Read also:
- AI Inspection Company, Zeitview, Secures $60 Million Funding for Expansion
- Future of Payments: If the U.S. regulates stablecoins through the GENIUS Act, according to Matt Hougan
- Ongoing trade friction as the American administration levies fresh import taxes on goods arriving from China
- High-Performance McLaren Automobile: McLaren Speedtail
