SoftBank acquired the Lordstown facility for $375 million earlier this month, as confirmed by Foxconn, though the buyer was not initially disclosed. Foxconn Chairman Young Liu stated: “Foxconn will continue operating the site via a venture the two companies will set up.” The collaboration combines Foxconn’s manufacturing capabilities with SoftBank’s investment to support the Stargate project’s objectives.
The Stargate initiative, involving SoftBank, OpenAI, and Oracle, plans to invest up to $500 billion to develop global AI infrastructure, emphasizing data centre expansion. The Ohio facility will be instrumental in producing equipment to support next-generation AI technologies, contributing to the project’s broader goals.
This move reflects Foxconn’s strategic shift to diversify beyond smartphone manufacturing, capitalizing on the growing demand for AI technologies. The company has been exploring new sectors, including AI servers, semiconductors, and electric vehicles, to strengthen its revenue streams. Liu noted that Foxconn’s partnership with SoftBank began over six months ago, highlighting a deliberate pivot toward AI infrastructure.
The Lordstown site in Ohio provides access to critical resources like electricity and land, making it a strategic location for AI-focused manufacturing. This project aligns with Foxconn’s broader efforts, including its participation in Nvidia’s $500 billion U.S. investment plan, which involves new facilities in Texas to support AI and technology production.
This collaboration underscores Foxconn’s commitment to fostering technological innovation and supporting the expansion of AI infrastructure in the U.S. through strategic partnerships and localized operations, contributing to economic growth in the region.
