China’s Lenovo builds AI servers in India as supply chain shift gathers pace

While India’s tech manufacturing sector is still small compared with China, it now makes increasingly sophisticated products such as iPhones

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Lenovo has started making AI servers in Pondicherry, India. Photo: Shutterstock

Published: 11:08am, 18 Sep 2024

Lenovo Group started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a hi-tech powerhouse.

The company said Tuesday it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company will also build out its facilities in the Bengaluru region, including a research lab with a focus on AI.

Those decisions form part of a broader shift as Lenovo positions itself for an anticipated boom in AI-empowered personal computers and devices. The company will invest US$1 billion globally over the next two years researching and developing AI platforms and hardware, said Amar Babu, Lenovo’s Asia-Pacific president.

Lenovo’s plans also mark another win for India as Prime Minister Narendra Modi tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks in recent years, global tech companies see it as an attractive option to build out operations as Beijing and Washington are mired in a trade war.

Server racks at a Lenovo’s research lab in Bengaluru, India. Photo: Bloomberg