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While India’s tech manufacturing sector is still small compared with China, it now makes increasingly sophisticated products such as iPhones
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.
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Server racks at a Lenovo’s research lab in Bengaluru, India. Photo: Bloomberg
The servers perform the computations needed to run services including generative AI, made famous by apps such as ChatGPT. The addition of AI servers means Lenovo will make its entire stack of hardware in India for the domestic as well as export markets, underscoring the country’s importance for the company. While India’s tech manufacturing sector is still small compared with China, it has been catching up and now makes increasingly sophisticated products such as Apple’s iPhones. AI servers represent another milestone, showing India can offer an alternative to regions with more established high-end manufacturing industries.

The country is also a fast-growing market in its own right. India AI demand is currently US$17 billion and growing 25 per cent to 30 per cent annually, Babu said.
Inside China Tech
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Taiwan currently produces the bulk of the world’s AI servers, which are used by technology giants such as Amazon.com, Microsoft and Nvidia. But with geopolitical tensions on the rise between mainland China and the West, companies are under pressure to shift manufacturing outside Taiwan. Demand for generative AI tools and applications has sent the need for related hardware soaring, with electronics manufacturer Foxconn Technology Group last year predicting that annual sales of AI servers could touch US$150 billion by 2027.
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.
Advertisement
Advertisement

Server racks at a Lenovo’s research lab in Bengaluru, India. Photo: Bloomberg
The servers perform the computations needed to run services including generative AI, made famous by apps such as ChatGPT. The addition of AI servers means Lenovo will make its entire stack of hardware in India for the domestic as well as export markets, underscoring the country’s importance for the company. While India’s tech manufacturing sector is still small compared with China, it has been catching up and now makes increasingly sophisticated products such as Apple’s iPhones. AI servers represent another milestone, showing India can offer an alternative to regions with more established high-end manufacturing industries.

The country is also a fast-growing market in its own right. India AI demand is currently US$17 billion and growing 25 per cent to 30 per cent annually, Babu said.
Inside China Tech
By submitting, you consent to receiving marketing emails from SCMP. If you don't want these, tick here

SIGN UP
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Taiwan currently produces the bulk of the world’s AI servers, which are used by technology giants such as Amazon.com, Microsoft and Nvidia. But with geopolitical tensions on the rise between mainland China and the West, companies are under pressure to shift manufacturing outside Taiwan. Demand for generative AI tools and applications has sent the need for related hardware soaring, with electronics manufacturer Foxconn Technology Group last year predicting that annual sales of AI servers could touch US$150 billion by 2027.
