Foxconn Sells Ohio EV Plant for $375 M to Pivot into AI Server Manufacturing

Hon Hai Precision Industry Co (Foxconn) has agreed to sell its struggling electric-vehicle (EV) assembly plant in Lordstown, Ohio, for $375 million, as it pivots the facility towards AI server manufacturing, Bloomberg reported.

Under the transaction, closed with Crescent Dune LLC, Foxconn transfers ownership of the land and equipment but will continue to operate on site under a long-term occupancy agreement, according to US Securities and Exchange Commission filings and a company statement.

Tech Manufacturing

The Ohio plant, originally acquired from Lordstown Motors Corp in 2022, was intended to produce Foxconn’s own EV models but faced repeated setbacks including production delays and weak market demand.

With those plans shelved, Foxconn is repurposing the 3 million-square-foot complex to assemble AI servers for major technology clients, notably Nvidia Corp and Apple Inc. A person familiar with the matter confirmed that Foxconn will leverage the site to build high-performance computing hardware, capitalising on surging US investment in AI infrastructure.

Foxconn’s move dovetails with US government goals to reshore advanced manufacturing. Under the Trump administration and continued by the current leadership, tech giants have pledged hundreds of billions of dollars towards domestic AI data-centre hardware.

Nvidia alone has projected up to $500 billion in server and chip investments over the coming years. Foxconn, as a key manufacturing partner, stands to capture a significant share of that market by expanding its American production footprint.

Operational Implications

The $375 million sale represents a partial recovery of Foxconn’s initial investment, though the company did not disclose its original purchase price. By offloading real estate and heavy-asset ownership to Crescent Dune, Foxconn can reallocate capital towards faster-growing technology segments while retaining operational control.

The transaction also mitigates the financial drag of the underperforming EV project and preserves jobs at the Ohio site, which currently employs several hundred workers.

Foxconn’s strategic realignment underscores a broader industry trend: manufacturers shifting from electric-vehicle initiatives, often capital-intensive with uncertain returns, to the more predictable, high-margin business of AI hardware assembly.

As the US and other governments incentivise semiconductor and server production, contract assemblers like Foxconn are racing to retrofit existing facilities, forge new partnerships and secure their roles in the fast-evolving AI supply chain.