SoftBank acquires Foxconn's Lordstown facility for $375 million to manufacture data center equipments as part of Trump's ambitious Stargate initiative.
Foxconn Technology Group has partnered with SoftBank Group Corp. to convert its former Ohio EV manufacturing facility into a production hub for AI data center equipment, marking a significant milestone in the ambitious $500 billion Stargate project.
SoftBank acquired the 6.2 million square foot Lordstown facility from Foxconn for $375 million through its entity Crescent Dune LLC, with plans to manufacture AI servers and related hardware as part of President Donald Trump's landmark AI infrastructure initiative announced in January 2025.
From EVs to AI
The transaction represents a dramatic shift for the facility, which Foxconn originally purchased from bankrupt Lordstown Motors in 2022 with ambitious plans for electric vehicle production. Power, site choice, and timing were the main factors for choosing this site, which was deemed a good match on all counts, Foxconn Chairman Young Liu told reporters on Monday, confirming that the company had been preparing the site for over six months.
Despite the sale, Foxconn will continue operating the facility through a joint venture with SoftBank, leveraging its expertise in high-volume electronics manufacturing to produce specialized AI hardware. The partnership builds on the companies' existing collaboration, including a separate $1.47 billion joint venture announced earlier this year, with each company contributing $735 million for U.S. data center and manufacturing initiatives.
The Stargate Initiative Takes Shape
The Stargate project, unveiled by President Trump alongside SoftBank founder Masayoshi Son in January, represents one of the most ambitious AI infrastructure investments in U.S. history. The initiative brings together four key players: SoftBank as the primary financial backer, OpenAI as the main user of the new infrastructure, Oracle providing cloud services, and now Foxconn handling hardware manufacturing.
The transformation of Foxconn's Ohio plant from a struggling EV manufacturing site to a cornerstone of America's AI infrastructure represents both the rapid evolution of technology priorities and the strategic importance of domestic manufacturing capabilities. For Lordstown, a community that has weathered the decline of traditional automotive manufacturing, the partnership offers renewed hope for economic revitalization.
