SoftBank to Launch AI Server Production in Fiscal Year 2027
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SoftBank plans to start mass-producing AI servers at a former Sharp factory near Osaka from fiscal 2027, converting an old LCD panel plant into a full-chain AI infrastructure base spanning batteries, cloud compute, and cybersecurity.
How does an old LCD factory become an AI server plant?
SoftBank acquired Sharp's LCD panel factory in Sakai city in 2025 and will convert it into a base for AI server design, assembly, and post-delivery maintenance.
The production line will use industrial robots heavily to cut the headcount needed for server manufacturing.
This means → SoftBank is not just buying or renting compute — it wants to control AI infrastructure from the hardware production layer, handling everything from design to ongoing maintenance.
Why insist on building domestically in Japan?
CEO Junichi Miyakawa told the annual shareholders' meeting: "Demand for domestically produced AI infrastructure is growing from an economic-security perspective."
In plain terms = the global AI compute race is intensifying, and Japan does not want to depend entirely on overseas supply chains for server hardware. SoftBank is riding that policy tailwind.
This reflects a broadening of the "domestic substitution" logic — it has moved beyond chips to whole-server production.
What else will this factory produce besides servers?
The Sakai site will also house a battery production line, also set to begin operations in fiscal 2027.
By fiscal 2030, annual battery capacity is targeted at 2 GWh — a unit of total battery capacity; 2 GWh is roughly enough to power tens of thousands of homes for a day.
SoftBank plans to export finished batteries to the U.S. market before 2030. This means → Sakai's ambitions reach well beyond Japan, targeting American energy-storage demand.
When does the cloud compute service go live?
SoftBank will begin offering cloud-based AI compute services from October this year, using existing data centers.
By the end of fiscal 2026, the company will set up a small test site in the U.S. to explore a full market entry.
In plain terms = build the servers yourself, sell the compute yourself — SoftBank is assembling a vertically integrated chain from hardware to cloud services.
What is the cybersecurity tie-up with OpenAI about?
Miyakawa disclosed plans to co-launch a cybersecurity service with OpenAI in Japan.
The service will use OpenAI's latest GPT-5.5-Cyber model to automatically detect enterprise system vulnerabilities and apply software patches.
This means → the SoftBank–OpenAI partnership has extended from "using ChatGPT" into vertical industry applications, with cybersecurity as the first deployment.
Content is for reference only, not financial advice.