The most common and most likely answer to this crossword clue is the 7 letter word FOUNDRY
I've seen this crossword clue in The Daily Telegraph
F
O
U
N
D
R
Y
Buddy explains!
The straight part
We know that "Factory" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case factory = foundry.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does FOUNDRY mean?
FOUNDRY noun- A facility that melts metals in special furnaces and pours the molten metal into molds to make products. Foundries are usually specified according to the type of metal dealt with: iron foundry, brass foundry, etc.
- The act, process, or art of casting metals; founding.
- A semiconductor fabrication plant in the microelectronics industry.