Amid Digital Innovation Push, Lenovo Hops On AI Server Manufacturing Bandwagon In India

Amid India rapidly pushing its growth to become a leading artificial intelligence hub, Chinese technology major Lenovo has reportedly started building AI servers in the country’s southern pocket, moving beyond products such as laptops and smartphones.

According to Bloomberg’s report, the company has kicked off manufacturing large and powerful computers in Puducherry.

Lenovo is also planning to develop its units in Bengaluru, which will also include an AI-focused research lab.

Earlier this year, it was reported that the company has been evaluating manufacturing of servers in India to take advantage of the production-linked incentive (PLI) scheme for IT hardware. Back then, the company’s senior vice president, Infrastructure Solutions Group Vlad Rozanovich said that this was in tandem with the growth of its data centre solutions business, as the company expects its infrastructure solutions group (ISG) vertical to record double digit growth.

Notably, Lenovo acquired Motorola in 2014. The China based tech giant also makes desktops and personal computers locally in India, besides all Motorola smartphones. 

Motorola was also an early beneficiary of the Centre’s PLI for mobile phone manufacturing.

The PLI for large-scale electronics manufacturing was introduced in 2020. It provides manufacturers with incentives to encourage domestic production. 

Lately, the push by the government and the ongoing tensions between Beijing and Washington have resulted in iPhone manufacturer Apple shifting some of its production to India. The company plans to make 25% of its iPhones in India by 2028. 

Meanwhile, another Chinese manufacturer Xiaomi, which is currently manufacturing wireless audio products in India, is also said to be looking to start smartphone production in the country. 

Foxconn, the Apple manufacturer from China, was also mulling to manufacture servers in India earlier this year. Notably, the company builds AI servers for global technology giants such as Amazon, Google, Microsoft and Nvidia.

Further, tech giant Google has also announced its plans to begin production of Pixel smartphones in India in partnership with Foxconn’s Indian subsidiary. 

While Mega Networks– one of the two Indian companies chosen to participate in PLI scheme 2.0, is considering manufacturing AI servers by the third quarter of the ongoing fiscal year 2024-2025.