SoftBank has made a decisive move to accelerate its ambitious Stargate AI initiative by acquiring Foxconn’s manufacturing plant in Ohio, a facility that was once a symbol of U.S. tech manufacturing aspirations but has struggled to meet its original production goals. The deal, which insiders say could be worth several hundred million dollars, marks a significant shift in the trajectory of the plant and signals SoftBank’s determination to build physical infrastructure to support next-generation artificial intelligence systems.
The acquisition underscores the Japanese investment giant’s belief that owning strategic, high-tech manufacturing assets in the United States is key to its long-term vision for AI dominance. Stargate, SoftBank’s collaborative AI supercomputing project — launched with OpenAI, major cloud providers, and select chip manufacturers — is aimed at creating the most advanced AI processing network in the world. The Ohio plant will serve as a critical hub for assembling specialized AI server racks, integrating cutting-edge chips, and conducting hardware-level R&D to support the growing demands of generative AI workloads.
From Foxconn’s Missed Promises to SoftBank’s Strategic Pivot
Foxconn originally acquired the Ohio site in the late 2010s with bold promises of creating thousands of jobs and building advanced LCD display panels. However, the project fell short of its initial goals, producing limited output and facing criticism over unmet commitments. For SoftBank, this underutilized facility represents an opportunity rather than a liability — a ready-made manufacturing infrastructure with access to skilled labor, transportation links, and existing industrial zoning.
By retrofitting the plant for AI-specific hardware manufacturing, SoftBank aims to dramatically shorten the timeline for producing the infrastructure required to run large-scale AI models. This includes custom AI accelerators, energy-efficient data center modules, and high-bandwidth networking systems designed to process real-time data streams for industries ranging from autonomous vehicles to financial trading platforms.
Why Ohio? The New Geography of AI Infrastructure
The decision to anchor a major piece of the Stargate project in Ohio is also a statement about shifting supply chain strategies in the AI sector. While many AI hardware facilities are concentrated in Asia or Silicon Valley, U.S. locations offer geopolitical stability, strong intellectual property protections, and direct access to America’s rapidly growing AI talent pool. Ohio, in particular, benefits from proximity to major cloud data centers in the Midwest, lower energy costs, and favorable state-level incentives for tech investment.
Local officials are already celebrating the acquisition, with Ohio’s governor calling it “the start of a new industrial chapter for the state” and promising infrastructure upgrades to support the facility’s transformation. Industry analysts say the move could make Ohio an emerging AI hardware hub, attracting suppliers, engineers, and AI startups to the region.
Stargate AI: A Race Against Time
SoftBank’s Stargate AI project is racing against rivals such as NVIDIA-led AI hardware alliances, Google’s TPU expansion, and Microsoft’s AI datacenter buildouts. Owning its own large-scale manufacturing site gives SoftBank an edge in controlling supply chains, reducing dependency on external manufacturers, and tailoring production to the needs of its AI ecosystem partners.
Sources close to the deal say SoftBank is planning to start renovations immediately, with the first AI hardware products expected to roll off the line by late 2026. In parallel, the company is negotiating with chipmakers to secure long-term supply agreements for high-performance AI processors.
Economic and Strategic Implications
The acquisition is also being viewed through a geopolitical lens. As the U.S. and its allies seek to secure domestic production of critical AI infrastructure, SoftBank’s investment aligns with Western priorities of reducing dependency on manufacturing in China and Taiwan. The deal could even benefit from federal incentives under the CHIPS and Science Act, which encourages domestic semiconductor and AI hardware production.
If SoftBank succeeds in transforming the Ohio plant into a world-class AI hardware hub, it will not only revive a once-troubled manufacturing site but also set a precedent for how global tech investors can repurpose underutilized industrial assets to power the next wave of innovation.
For now, one thing is clear — the race to dominate AI isn’t just about algorithms and models anymore. It’s about who controls the physical backbone of AI, and with this acquisition, SoftBank is making sure it has both the code and the concrete to compete.
