Tech Giants Hon Hai and SoftBank to Collaborate on Manufacturing Data Center Equipment in Ohio
In a significant development, Hon Hai Precision Industry Co., better known as Foxconn, and SoftBank Group Corp. have announced a joint venture to manufacture AI data center equipment in Ohio, United States. The collaboration is part of SoftBank's Stargate Project, an ambitious investment plan aimed at building new AI infrastructure.
The Stargate Project, unveiled in January 2025, seeks to develop next-generation AI infrastructure through large-scale data centers [2]. The joint venture with Foxconn will see the Taiwanese firm using its former electric vehicle factory in Lordstown, Ohio, for this purpose. Interestingly, SoftBank had acquired this factory earlier this month [5].
Foxconn continues to operate the site under this arrangement, leveraging its expertise in manufacturing to contribute to the collaboration [2]. SoftBank, on the other hand, has transformed the site into a major AI data center equipment manufacturing hub as part of the Stargate initiative [2][5].
Despite its ambitious goals, the Stargate Project has faced operational and financial challenges. SoftBank's Chief Financial Officer has acknowledged difficulties in site selection and coordinating the many stakeholders involved [1].
The joint venture between Hon Hai and SoftBank will be equal, with both companies having a 50% stake. The venture will design and manufacture data center equipment, marking a significant step forward in the development of AI infrastructure in the United States.
The Stargate Project is not just limited to this joint venture. It is a partnership that includes OpenAI and Oracle, aiming to build data centers globally to support AI development. The project also includes initiatives like Stargate Norway, highlighting its global expansion efforts [4].
In summary, the joint venture between Hon Hai (Foxconn) and SoftBank in Ohio is operationalizing with the repurposing of the Lordstown factory to manufacture AI data center equipment. However, the overall Stargate Project faces delays and challenges in execution so far [1][2][5].
References: 1. SoftBank's Stargate Project Faces Challenges 2. SoftBank and Foxconn Announce Joint Venture for AI Data Center Equipment 3. SoftBank Acquires Former Electric Vehicle Factory in Ohio 4. Stargate Norway: A New AI Data Center Initiative 5. Foxconn to Manufacture AI Data Center Equipment in Ohio
Read also:
- 1. Key Points for August 14: Gathering in Alaska, Immigration Enforcement (ICE), Financial service Zelle, Infowars, and Air Canada Airline Incidents
- Automobile manufacturer IM Motors reveals an extended-range powertrain akin to installing an internal combustion engine in a Tesla Model Y.
- Conflict Erupts Between Musk and Apple Over Apple Store's Neglect of Grok
- Partnership between MTN South Africa and SANTACO aims to advanced transportation systems and stimulate economic opportunities for the masses in South Africa.
