This droid factory, situated on Hypori, was one of the many such facilities that the Confederacy of Independent Systems owned and used to mass-produce battle droids for their war effort against the Republic; thousands of droids were created here. These factories were droid factories.
Jedi Master Daakman Barrek and his Padawan, Sha'a Gi, were the ones to discover the factory, which led to the Battle of Hypori. Remarkably, this particular droid factory managed to survive the deactivation of the Separatist Droid Army at the hands of Sith Lord Darth Vader during 19 BBY.
During the Galactic Civil War, the Hutt Cartel became interested in this factory. Jabba the Hutt intended to utilize it to eliminate Tyber Zann and his army, but his plan ended in failure due to Zann's resilience. Subsequently, Tyber leveraged Hypori's resources to manufacture droideka Mark IIs, which are powerful droids that he would use to spread his corruption throughout the galaxy.