Pegatron, a Taiwan-based electronics manufacturer, has announced a partnership with Sysgration to increase the production of Battery Backup Units (BBUs) for AI servers built in the United States.

Partnership Details

The partnership aims to strengthen the domestic supply chain for essential components of servers dedicated to artificial intelligence. BBUs are critical components that ensure data integrity in the event of a power outage, a fundamental aspect for AI workloads.

Market Implications

This move may indicate a growing emphasis on localizing the production of AI server components, potentially influenced by geopolitical considerations and the need for greater supply chain resilience.