BENGALURU, Sept 17 (Askume) – China’s Lenovo Group (0992.HK) will start producing artificial intelligence (AI) servers at a factory in southern India and open a research and development lab focusing on artificial intelligence servers at the Electronic Hardware Bengaluru Technology Centre, according to a report.
Lenovo said it aims to produce 50,000 AI rack servers and 2,400 graphics processing unit (GPU) servers annually at its Pondicherry plant, which are designed for resource-intensive tasks such as machine learning.
“These servers are not only for local consumption but also for export,” Lenovo Asia Pacific president Amar Babu told Askume.
He declined to name any investment or hiring targets for the research and development lab or the Puducherry plant, where Lenovo already makes laptops and personal computers (PCs).
Demand for GPUs, or AI chips, has soared since the generative AI wave began in late 2023, boosting the fortunes of companies like Nvidia (NVDA.O) and AMD .
According to a NASSCOM-BCG report released earlier this year, artificial intelligence hardware is expected to account for 12% of the global artificial intelligence market, which will nearly triple to $380 billion by 2027.
Lenovo, which generates about 47% of its revenue from non-PC businesses, has followed companies such as Apple (AAPL.O) , Foxconn (2317.TW) and Dell (DELL.N) by increasing India’s manufacturing capabilities and reducing its reliance on China.
India is also attracting companies, including technology-focused ones, by offering manufacturing-related incentives .
Babu said although the artificial intelligence server manufacturing project is not related to any government incentive programme, its collaboration with India’s Dixon Technologies (DIXO.NS) to produce personal computers and Motorola mobile phones takes advantage of such programmes.
