According to Capacity Media, Foxconn plans to manufacture data center equipment in collaboration with SoftBank at the Taiwanese firm's former electric vehicle factory in Ohio. SoftBank has purchased the Lordstown site for $375 million, with Foxconn Chairman Young Liu confirming that Foxconn will continue operating the facility through a joint venture between both companies. The manufacturing partnership represents part of the $500 billion Stargate project, which includes SoftBank, OpenAI, and Oracle working to advance AI infrastructure development across the United States.

The Ohio facility spans 6.2 million square feet and was previously used for electric vehicle production. SoftBank will supply manufacturing equipment to the factory, while the joint venture will produce AI data center equipment and server components. This collaboration comes as Foxconn reported that AI server revenue surpassed its consumer electronics business for the first time in the second quarter of 2025.

Strategic Shift Toward AI Infrastructure Manufacturing

This partnership reflects Foxconn's broader transition away from traditional consumer electronics toward AI-focused hardware production. The company now generates 41% of its revenue from cloud and networking products, compared to 35% from smart consumer electronics including iPhone assembly. Bloomberg reports that the groundwork for this Ohio project began more than 18 months ago, making it the first manufacturing site established under the Stargate initiative.

Foxconn expects AI server revenue to grow over 170% in the third quarter compared to the same period in 2024. The company's transformation demonstrates how traditional electronics manufacturers are adapting to meet surging demand for AI infrastructure. This strategic pivot allows Foxconn to capitalize on higher-margin server production while reducing dependence on smartphone manufacturing, which faces increasing market pressures.

AI Data Center Market Expansion Creates New Opportunities

The global AI data center market is experiencing rapid growth, with projections showing expansion from $13.62 billion in 2024 to $93.60 billion by 2032. Grand View Research estimates the market will grow at a 28.3% compound annual growth rate through 2030, driven by increasing adoption of AI technologies across industries including healthcare, finance, and telecommunications.

Approximately 33% of global data center capacity will be dedicated to AI applications by 2025, rising to 70% by 2030. The United States currently hosts 51% of the world's hyperscale AI data centers, creating substantial demand for specialized manufacturing capabilities. This demand surge has created opportunities for established manufacturers like Foxconn to diversify revenue streams while supporting critical infrastructure development for AI advancement.

Industry Consolidation Around AI Infrastructure Needs

The Foxconn-SoftBank partnership represents broader industry consolidation as companies position themselves to serve AI infrastructure requirements. Traditional electronics manufacturers are forming strategic alliances with technology investors and cloud providers to capture market share in the rapidly expanding AI hardware sector. These partnerships combine manufacturing expertise with financial resources and market access necessary for large-scale infrastructure projects.

The collaboration addresses supply chain constraints that have limited AI data center expansion. Manufacturing capacity shortages and equipment delays have created bottlenecks for companies seeking to build AI infrastructure. By establishing dedicated production facilities like the Ohio plant, manufacturers can provide more reliable supply chains for data center operators while securing long-term revenue contracts. This approach benefits both manufacturers seeking stable demand and technology companies requiring predictable equipment availability for their expansion plans.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The index provides comprehensive analysis of how different jurisdictions are adapting their infrastructure and policies to support emerging technologies.