Stargate project: Foxconn, SoftBank to manufacture data centre equipment

The decision to develop data centre equipment is part of the Stargate project, Foxconn says, as several companies including SoftBank plan to advance AI infrastructure in the US.

According to Reuters, SoftBank has purchased the Lordstown site in Ohio, with Foxconn chairman Young Liu telling reporters that Foxconn will continue to operate the site via a joint venture between both companies.

Foxconn also said that it arranged a deal earlier in the month to sell the factory and its machinery for US$375 million but has not yet named the buyer.

Stargate, the joint venture between SoftBank, OpenAI and Oracle, is working to expand across the world and support strong AI development, pledging that they would invest up to $500 billion. The project was first announced by US President Donald Trump in January 2025 and has been planned to include data centre developments in order to facilitate the next generation of AI technology.

The news from Foxconn comes as the company announces its main business is no longer Apple, with Reuters reporting that it seeks to take advantage of the AI boom in order to diversify its income.

Foxconn quickly rose to become a global technology manufacturer and has relied on its smartphone business for some time. However, with recent sales risks, the company has been undertaking new business ventures in recent years – including in AI servers, semiconductors and EVs.

Its plans to built factories in Texas, as part of Nvidia’s $500 billion US investment plan, is perhaps part of demonstrating this strategic pivot.

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