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Lenovo to make AI servers in India as nation's tech push deepens

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Chinese PC maker Lenovo Group has started building artificial intelligence (AI) servers from India to complete its full-stack portfolio to be now made in the country.

On Tuesday, the hardware firm announced it has started making the large, powerful computers in its Puducherry facility and also launched its AI-focused research & development (R&D) lab in Bengaluru.

“Lenovo has started manufacturing AI servers in India, marking a significant move in the tech industry. The production line at Lenovo’s Puducherry facility, operational since 2005, will now produce enterprise AI and GPU servers for AI workloads, designed to meet the growing demands of local and international markets. These servers, featuring Lenovo’s advanced 8-way GPU architecture, will address the booming AI infrastructure needs, with over 60% of the production slated for export across the Asia-Pacific region,” the company said in a statement.

The Puducherry plant will produce 50,000 AI rack servers and 2,400 high-end GPU units each year, helping Lenovo strengthen its supply chain for AI solutions to serve domestic demand as well as potential expansion into overseas markets. The Bengaluru lab will focus on developing and testing new server platforms, including hardware, firmware, and software. It’s part of Lenovo’s global R&D network of 18 labs, with four critical labs in the US, China, and Taiwan.


"This is a big step toward achieving Lenovo's and India’s ‘AI for All’ vision. We are committed to expanding India’s role in global tech innovation and manufacturing,” said Amar Babu, president of Lenovo Asia Pacific without elaborating on the specifics.

Currently, Taiwan produces the bulk of the world’s AI servers, which are used by technology giants including Amazon, Microsoft and Nvidia.

The Bengaluru-based lab is said to work on mainstream server designs and other tech initiatives, helping Lenovo strengthen its research capabilities globally.

“With today’s announcement of AI server manufacturing in India, we complete Lenovo’s pocket-to-cloud technologies ‘Made in India’ for the world. The Infrastructure R&D Lab’s focus on designing and developing next-generation mainstream servers further underscores Lenovo’s dedication to ‘R&D in India for the world,” said Shailendra Katyal, Managing Director of Lenovo India.

In India, Lenovo set up its R&D for Motorola 10 years ago and has been manufacturing in India since 2005, producing over seven million devices last year.

Globally, the $57-billion technology firm has announced plans to invest $1 billion by FY26.
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