Foxconn Technology (OTCPK:FXCOF) said it plans to make data center equipment with SoftBank Group (OTCPK:SFTBY) (OTCPK:SFTBF) at the Taiwan-based company’s former electric vehicle factory in Ohio, part of the Stargate project to advance U.S. AI infrastructure, Reuters reported.
Foxconn Chairman Young Liu told reporters that Softbank has bought the Lordstown site and that Foxconn will continue operating the site through a venture the two companies will establish, the report added.
Earlier this month, it was reported that SoftBank was the buyer taking ownership of Foxconn’s EV plant in Ohio. SoftBank had approached the Apple (AAPL) supplier — which is formally known as Hon Hai Precision (OTCPK:HNHAF) (OTCPK:HNHPF) — with its plan to establish data centers and related infrastructure across the U.S. Hon Hai Precision Industry, the flagship unit of Foxconn, had agreed to sell the EV plant to Crescent Dune LLC for $375M without disclosing the company behind the entity.
Foxconn and SoftBank did not immediately respond to a request for comment from Seeking Alpha.
SoftBank and Foxconn began preparatory work for the project more than half a year ago, Young noted, according to the report.
“We understand that for this project, the first priorities are power, venue, and timing — it cannot be delayed for too long. Taking all these factors into account, we believe Ohio is a very suitable location, and SoftBank shares this view,” he said.
Stargate is a joint venture between SoftBank, OpenAI and Oracle (ORCL). The project, which is expected to see investment worth up to $500B, was announced by U.S. President Donald Trump in January.
Earlier this month, SoftBank’s CFO Yoshimitsu Goto said it was taking longer than expected to get the Stargate project off the ground, acknowledging for the first time that the AI collaboration in the U.S. with OpenAI is slowing down.