TOKYO (Kyodo) -- Japanese electronics firm Sharp Corp. said Tuesday it has started taking domestic orders for artificial intelligence servers, made by its Taiwanese parent, Foxconn.

Collaborating with several other companies in Japan and abroad, Sharp is entering the expanding domestic AI server market and aims to help develop AI infrastructure in Japan, with sales of its servers planned to begin in fiscal 2027 starting next April.

The servers, targeting local governments, research institutions and data center operators, feature U.S. semiconductor giant Nvidia Corp.'s latest AI platform, with procurement and manufacturing handled by Foxconn, formally known as Hon Hai Precision Industry Co.

Helped by strong demand for AI, Sharp aims to achieve sales of around 250 billion yen ($1.6 billion) in fiscal 2030, while also eyeing domestic production and aiming to expand the business globally in the future.

"As AI becomes increasingly integrated into social infrastructure, it is important to develop a reliable computing base that many companies can use," Sharp CEO Tetsuji Kawamura said at a press conference in Tokyo.

The CEO said the company views this major shift as a new growth opportunity, adding it "will contribute to the development of AI infrastructure and the broader adoption of AI in Japan."

AI servers are used for AI training and inference, in which AI generates answers based on what it has learned, with the company expecting the domestic server market to grow from about 900 billion yen in fiscal 2025 to roughly 4 trillion yen in fiscal 2030 and around 7 trillion in fiscal 2035.

Sharp will also consider jointly producing servers with Foxconn in the future. If realized, using its Kameyama plant in Mie Prefecture in central Japan would be one of the possible options, the company said.