Kaga Electronics entered into a basic contract with Starseeds dated 5 October for the contract manufacturing of AI servers. It aims to stabilize its domestic production system and start mass production in December 2026.
Kaga Electronics announced that it entered into a basic contract with Starseeds dated 5 October covering contract manufacturing. The agreement is intended to address growing demand for AI computing resulting from the spread of generative AI, as well as longer procurement lead times and supply instability arising from the current reliance on overseas production.
Under the collaboration, Starseeds will handle product planning for high-performance GPU servers and general-purpose servers and procure the latest-generation GPUs. Kaga Electronics will use equipment and resources at its domestic factories to undertake everything from materials procurement and management through manufacturing and assembly, shipping inspection, packaging and finished-product management. Starseeds will bear the factory renovation costs and purchase the manufacturing equipment, which it will lease to Kaga Electronics free of charge.
Mass production is targeted to begin in December 2026, with the conditions for mass production expected to be set out in individual contracts. The impact on consolidated results is currently under review.