Foxconn to operate Lordstown, Ohio plant for SoftBank’s Stargate AI servers
Joint venture with SoftBank supplies equipment; Oracle and OpenAI tied
Site seen as candidate manufacturing hub for $500 billion Stargate project
Ohio chosen for land, power and telecom capacity critical to data-centre manufacturing
Hon Hai Precision Industry Co. (Foxconn) will operate a US factory recently bought by SoftBank Group, turning the former EV plant in Lordstown, Ohio, into a production site for AI servers and data-centre equipment tied to SoftBank’s ambitious “Stargate” initiative with OpenAI and Oracle, Bloomberg reported.
The move positions the Ohio complex as a leading candidate to become the first manufacturing hub for the $500 billion Stargate project.
Liu said Foxconn will continue to run the complex after SoftBank acquires the property, while SoftBank will provide manufacturing equipment and take the lead on venue selection and infrastructure. The two firms are forming a joint venture to produce AI and data-centre-related hardware at the site.
Deal Background & Scale
The Lordstown facility, formerly used for electric-vehicle assembly, has already been reported to have been sold by Foxconn; published accounts put the transaction and related site deals in the low- to mid-hundreds of millions of dollars.
The Stargate programme, announced earlier this year, envisages major investment in data-centres, power and related infrastructure to support large-scale AI deployment.
Executives said Ohio was chosen for its combination of land, electricity capacity and telecom access, factors critical for AI server manufacturing and data-centre siting.
SoftBank and Foxconn have been preparing for the project for months and told reporters timing was a critical factor in moving quickly to convert the plant.
AI Supply Chains
If developed at scale, the Ohio plant would help anchor part of the onshore production pipeline for servers and other hardware needed by hyperscalers and AI firms, a core objective of Stargate and a high priority for US policy makers seeking to expand domestic AI infrastructure.
Foxconn, already a major assembler of servers and consumer electronics, brings manufacturing scale while SoftBank supplies capital and site control.
Key near-term milestones include formalisation of the joint venture terms, public filings or permits related to the site conversion, hiring and supplier commitments, and confirmation of whether the Ohio complex will also host operational data-centre capacity in addition to hardware manufacturing.
Observers will also monitor how Stargate secures project financing and local support amid scrutiny about water, power and community impacts for large data-centre developments.
