Kaga Electronics, a semiconductor trading company, has begun contract manufacturing of AI servers for Starseeds at a domestic factory and aims to start mass production during December. The basic contract was signed on the 5th.
Kaga Electronics entered into a basic contract on the 5th with Starseeds, which handles the design of AI servers, procurement of GPUs for computing applications and product sales. Starseeds will handle AI server planning and design, GPU procurement and sales, while Kaga Electronics will handle factory operations and the procurement of semiconductors and electronic components.
The contract manufacturing covers AI servers and general-purpose servers, with production planned at a domestic factory and mass production expected to begin in December.
Starseeds will bear the factory renovation costs, while the scale of mass production and delivery schedule are currently under discussion.
Although data center investment is increasing with the spread of generative AI, supply instability has been an issue because most servers have depended on overseas production. The companies aim to stabilize supply by expanding domestic production.