Factory worlds, also called foundry worlds, were planets that contained massive factories on their surfaces. They were often rich in minerals such as iron.
Factory worlds were used by the Confederacy of Independent Systems around the time of the Clone Wars to produce countless battle droids for their army. Geonosis was one such factory world, as was Metalorn, which came under Imperial control in the time afterwards. The Confederacy attempted to make Utapau into another of their factory worlds, by constructing self-replicating Techno Union factories that could gradually turn an entire world into an industrialized wasteland of assembly lines and refineries. The Republic invasion halted those plans.
In some cases, like Kol Huro, entire systems were geared towards manufacturing only. Several galactic sectors were heavily industrialized, with factory worlds spread throughout them. Most notable were the Kuat, Corellian and Humbarine sector. During the Galactic Civil War, the planet Balmorra was an important factory world for the Imperial Army, being the prime manufacturer of the AT-ST walker.
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