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

According to a report by the Nihon Keizai Shimbun (Nikkei) on May 8, SoftBank Group will develop artificial intelligence (AI) servers made in Japan.

SoftBank has begun discussions with Nvidia and Taiwan’s Foxconn regarding the development and production of servers. The company plans to establish an initial production system by the late 2020s that will assemble servers using externally sourced components. In the long term, SoftBank aims to create a system in which it procures and assembles all processes of server manufacturing in-house. While initially leveraging the expertise of outside companies for electronic components used in AI servers—excluding semiconductors—the goal is to transition to in-house design and development. Nvidia operates a server certification program featuring its own graphics processing units (GPUs), and Foxconn possesses world-leading capabilities in AI server contract manufacturing. SoftBank is also considering establishing a production base at the site of the Sharp Sakai plant, which it acquired last year.

SoftBank logo. Photo by Reuters and Yonhap News

According to ABI Research, a U.S. market research firm, the AI server market is projected to reach $524 billion (approximately KRW 764.254 trillion) by 2030, nearly double the size compared to 2025. As the rapid adoption of AI in sectors such as administration and finance continues, demand for "sovereign AI"—developed and operated domestically to prevent overseas data leakage—is increasing. To meet this demand, domestically produced AI servers are essential. However, five companies, including Dell Technologies of the United States and China’s Inspur Group, currently control more than half of the contract manufacturing market.

Meanwhile, SoftBank’s entry into the advanced AI server business will be included in its medium-term management plan, scheduled to be announced on May 11. Masayoshi Son, Chairman of SoftBank, has recently accelerated investments in the generative AI industry. SoftBank Group is reported to have invested more than $30 billion in OpenAI, acquiring approximately an 11% stake.

This content was produced with the assistance of AI translation services.