Software giant Hon Hai and tech conglomerate SoftBank to collaborate on manufacturing data center equipment in Ohio.
In a significant development, Taiwanese contract electronics manufacturer Hon Hai Precision Industry Co., also known as Foxconn, and Japanese technology investor SoftBank Group Corp. have announced a collaboration to manufacture equipment for artificial intelligence data centers in Ohio, United States.
The collaboration, which was reported by local media, is part of a broader investment in new AI infrastructure in the United States. The details of the use of the former electric vehicle factory were not previously mentioned, but it has been confirmed that the joint venture will utilize this facility. SoftBank Group Corp. acquired the former electric vehicle factory earlier this month.
Young Liu, chairman of Hon Hai Precision Industry Co., made the announcement, confirming that the joint venture will design and manufacture data center equipment. The joint company will use the acquired factory for this purpose, with the location remaining the same in Ohio, United States.
This collaboration aligns with a global push to expand AI infrastructure and compete in advanced AI computing. The Stargate Project, a multibillion-dollar AI infrastructure joint venture started by OpenAI, SoftBank Group, Oracle, and others, aims to invest up to $500 billion by 2029 in building AI data centers and advancing AI technology primarily in the United States.
Foxconn, traditionally known for manufacturing consumer electronics such as iPhones for Apple, is pivoting to AI-related manufacturing, including AI servers for Nvidia and now modular AI data center equipment for the Stargate project. This strategic diversification comes amid changing market dynamics in its core smartphone business.
The first data center tied to the Stargate project in Ohio is expected to open by the end of 2025, following careful site and design planning. The collaboration between Hon Hai Precision Industry Co. and SoftBank Group Corp. remains equal, with each company holding 50% ownership.
This news marks a significant step forward for the Stargate Project and the broader AI industry, as companies continue to invest in and develop AI infrastructure in the United States.
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