Stock Markets May 7, 2026 02:42 PM

SoftBank in Talks with Nvidia and Foxconn to Develop Japan-Made AI Servers

Company aims to assemble externally sourced components by decade-end, with a longer-term plan to internalize full server manufacturing

By Hana Yamamoto NVDA

SoftBank Corp has opened discussions with Nvidia and Foxconn about creating AI servers manufactured in Japan. The plan envisages an initial phase of assembling externally sourced parts by the end of the decade and a later stage where SoftBank would handle full production. The effort would target high-performance machines designed to run advanced graphics processing units at high speeds and could be included in SoftBank’s medium-term management plan.

SoftBank in Talks with Nvidia and Foxconn to Develop Japan-Made AI Servers
NVDA

Key Points

  • SoftBank Corp has begun discussions with Nvidia and Foxconn to explore building AI servers manufactured in Japan.
  • Initial plan calls for assembling externally sourced components by the end of the decade, with a later shift to full in-house production.
  • The unit would prioritize high-performance servers capable of running advanced GPUs at high speeds, and the project may be included in SoftBank’s medium-term management plan.

May 8 - SoftBank Corp has entered talks with U.S. chip maker Nvidia and Taiwanese contract manufacturer Foxconn as it considers building domestically produced artificial intelligence servers, the Nikkei newspaper reported on Friday.

According to the report, SoftBank’s intention is to establish a production system that begins by assembling components sourced from outside the company, with that initial assembly work targeted to start by the end of the decade. Over time, the plan would see SoftBank take responsibility for the entire manufacturing process.

The unit under consideration would concentrate on high-performance server hardware designed to operate advanced graphics processing units at high speeds. The report said the project could be incorporated into SoftBank’s medium-term management plan, which may be announced as soon as Monday.

Separately, the report noted that the broader SoftBank Group, led by Masayoshi Son, has invested more than $30 billion in OpenAI to date, taking a stake of about 11% as part of a concentrated bet on developers of large language models.


Context and intent

The discussions as described focus on constructing a domestic capability for high-performance AI servers. The approach outlined in the report is staged: an initial phase of assembling externally sourced components within Japan by the decade’s end, followed by a progression toward internal, end-to-end manufacturing. The planned server products would be optimized for running advanced GPUs at high speeds.

Timing and corporate planning

The project is said to be part of SoftBank’s medium-term management plan, with the possibility of an announcement in the near term. The report links the initiative with the group’s substantial investments in OpenAI, noting over $30 billion deployed so far for roughly an 11% ownership stake.

Limitations of available information

The report provides an outline of intentions and timing but does not supply technical specifications, volume targets, or firm contractual terms between the parties. It also does not state definitive dates for when SoftBank would transition from assembly to full manufacturing control.

Risks

  • Uncertainty over timing and execution - the report sets aspirational timelines but does not provide firm dates or detailed milestones, which creates execution risk for manufacturers and suppliers.
  • Dependency on external components during the initial phase - reliance on sourced parts may expose the project to supply chain and cost volatility affecting technology and manufacturing sectors.
  • Limited detail on commercial terms and scale - without specifics on production scale or contractual commitments, market and investor responses in the semiconductor, telecom, and contract manufacturing sectors remain uncertain.

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