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Business Alliance8154KAGA ELECTRONICS CO.,LTD.Trading & Wholesale

Notice Regarding the Execution of a Basic Agreement for Contract Manufacturing with Star seeds Co.,Ltd.

KAGA ELECTRONICS has entered into a basic agreement with Star seeds Co.,Ltd. to undertake the procurement of components, manufacturing, inspection and shipment of GPU servers and general-purpose servers, and will begin collaboration on domestic production. Mass production is targeted to begin in December 2026.

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Agreements reached under this partnership

Business Alliance
8154KAGA ELECTRONICS CO.,LTD.
Alliance partnerSTARSEEDS (Star seeds Co.,Ltd.)
Details of the alliance
  1. 1

    Star seeds Co.,Ltd. will handle product planning for high-performance GPU servers and general-purpose servers, as well as the procurement of the latest-generation GPU products from NVIDIA and other suppliers.

  2. 2

    For production, we will use the domestic factory facilities and resources of our business partners. Under our quality control system, we will undertake the full range of manufacturing operations, from the procurement and management of components such as electronic components and semiconductors, through product manufacturing and assembly, pre-shipment inspection, packaging and management of finished products.

  3. 3

    Star seeds Co.,Ltd. will bear the cost of renovation work required at the factory to perform these operations, and will purchase the necessary manufacturing equipment and lease it to us free of charge.

  4. 4

    Specific terms for mass-production transactions, including prices, quantities and delivery dates, will be set out in separate agreements for individual products.

These are items that the documents state the two companies will work on. The lines above and below represent arrangements between the two companies.

Numerical targets under the alliance

Mass production launch (target): December 2026

About the partner
Business DescriptionICT-related business (procurement and sales of AI servers for data centers) / Energy-related business (including grid-scale battery storage) / Planning and sales of apparel and fashion-related products
LocationMinato-ku, Tokyo
Impact on Business Performance

We are currently reviewing the impact of this matter on our consolidated results. We will promptly disclose any matters that arise requiring disclosure.

Contract Date5 October 2026
Agreements reached under this partnership
ItemDetails
Name of alliance partnerSTARSEEDS (Star seeds Co.,Ltd.)
Alliance partner's business activitiesICT-related business (procurement and sales of AI servers for data centers) / Energy-related business (including grid-scale battery storage) / Planning and sales of apparel and fashion-related products
Alliance partner's locationMinato-ku, Tokyo
Type of allianceBusiness Alliance
Details of the allianceStar seeds Co.,Ltd. will handle product planning for high-performance GPU servers and general-purpose servers, as well as the procurement of the latest-generation GPU products from NVIDIA and other suppliers., For production, we will use the domestic factory facilities and resources of our business partners. Under our quality control system, we will undertake the full range of manufacturing operations, from the procurement and management of components such as electronic components and semiconductors, through product manufacturing and assembly, pre-shipment inspection, packaging and management of finished products., Star seeds Co.,Ltd. will bear the cost of renovation work required at the factory to perform these operations, and will purchase the necessary manufacturing equipment and lease it to us free of charge., Specific terms for mass-production transactions, including prices, quantities and delivery dates, will be set out in separate agreements for individual products.
Numerical targets under the allianceMass production launch (target): December 2026
Contract Date5 October 2026
Impact on Business PerformanceWe are currently reviewing the impact of this matter on our consolidated results. We will promptly disclose any matters that arise requiring disclosure.
Items this document does not state (15)
Alliance partner's capitalAlliance partner's net salesAlliance partner's operating incomeNumber of shares acquiredAcquisition priceShareholding ratioOverview of the joint ventureOwnership ratioDispatch of directors and officersContract PeriodShareholding PolicyDate of board resolutionAlliance start dateShare Acquisition Date and Payment DateChange in major shareholders

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The aim is to address longer procurement lead times and supply instability resulting from reliance on overseas production, and to establish a stable domestic production and supply system for AI servers. The companies plan to combine their respective strengths in product planning and procurement, manufacturing, quality control and supply chain management to achieve short lead times, high quality and stable supply.

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Notice Regarding the Execution of a Basic Agreement for Contract Manufacturing with Star seeds Co.,Ltd. | KAGA ELECTRONICS CO.,LTD. (8154) timely disclosure | Komori