Nexa Dynamics Secures 13 Billion Won After M&A... Begins Localization of 'Korean AI GPU Server'

KOSDAQ-listed company Nexa Dynamics has secured approximately 13 billion won in growth capital following its management acquisition merger (M&A) and is set to embark full-scale on the localization of finished artificial intelligence (AI) graphic processing unit (GPU) servers.

On September 16, Nexa Dynamics announced that the entirety of the approximately 13 billion won rights offering, as resolved by its board of directors, has been fully paid in. Based on the secured funds, the company plans to establish a specialized manufacturing line for GPU servers for AI data centers at its facility within the Siwha National Industrial Complex.

This new business initiative is a strategy aimed at addressing the increasing domestic demand for high-performance servers driven by the growth of the AI industry, while also securing competitiveness in the finished GPU server market, which has a high reliance on overseas manufacturers.

South Korea boasts strong manufacturing competitiveness in key AI server components such as high-bandwidth memory (HBM), DDR memory, and enterprise solid state drives (SSD). However, according to the company, the market for finished GPU servers—assembled and supplied to data centers—remains heavily dependent on foreign companies such as Supermicro, Dell, and HPE.

Nexa Dynamics is constructing a dedicated GPU server facility of approximately 3,000 square meters on the second floor of its plant in the Siwha National Industrial Complex. The facility will comprise a 2,000-square-meter operation area and a 1,000-square-meter production zone, featuring specialized lines for GPU server assembly and quality testing.

The company plans to complete equipment installation and pilot production in the fourth quarter of 2026, with plans to begin full-scale mass production in 2027. It will initially deploy around 60 professionals and aims to secure production capabilities encompassing all processes from product planning and supply chain management (SCM) to system integration and qualification verification.

Nexa Dynamics is also pursuing synergy with its data center business. The company intends to expand cooperation with DC Korea and DCP Group, integrating data center development and operations with AI server manufacturing to maximize cross-business synergies.

Currently, urban edge AI data center projects are underway at key locations in the Seoul metropolitan area, while a hyperscale data center construction project is ongoing in Dangjin, South Chungcheong Province. The company plans to link its in-house production line to meet the future server demands of these data centers, aiming to boost initial utilization rates and secure a stable revenue base.

Business expansion through integration with existing operations is also being pursued. Leveraging its capabilities in display panel production equipment and precision automation machinery, Nexa Dynamics plans to nurture GPU server manufacturing as a new growth engine.

In addition to GPU server production and system integration, the company intends to gradually expand into the AI computing resource leasing business, with the mid-to-long-term goal of becoming a comprehensive AI hardware (HW) platform company.

Further fundraising is also planned. Nexa Dynamics is pursuing an additional rights offering of 30 billion won, with the raised capital to be used for expanding the GPU server production line, enhancing AI computing infrastructure, and stabilizing the supply chain for key components.

A company official stated, "Based on the capital secured through the 13 billion won rights offering and additional issuances, we will continue to invest, strengthen strategic partnerships with domestic and international partners, and transform ourselves into a leading company within the AI industry."

This content was produced with the assistance of AI translation services.