Lenovo Group announced plans to manufacture artificial intelligence (AI) servers at its facility in southern India, located in Puducherry. Lenovo Group launched an AI-focused research and development (R&D) lab in Bengaluru, India’s tech hub.
Lenovo aims to produce 50,000 AI rack servers and 2,400 graphic processing unit (GPU) servers annually, catering to both domestic and export markets. These servers are designed to handle resource-intensive tasks such as machine learning. Amar Babu, Lenovo’s President of Asia Pacific, emphasized the export potential but did not disclose specific investment or hiring details for the R&D lab or manufacturing plant.
The demand for AI chips, particularly GPUs, has surged since the rise of generative AI technologies in 2023. Industry reports predict AI hardware will account for 12 percent of the global AI market, which is expected to nearly triple to $380 billion by 2027.
Lenovo’s expansion in India follows similar moves by tech giants like Apple, Foxconn, and Dell, as companies seek to diversify their manufacturing footprint away from China. Lenovo already produces laptops and personal computers at the Puducherry plant, marking a significant shift towards AI-driven technology solutions.
