Lenovo to make AI servers in India, opens new AI-focused lab in Bengaluru
China’s Lenovo Group is to produce artificial intelligence (AI) servers at its factory in southern India. The electronics hardware maker has also opened an R&D lab in the tech hub of Bengaluru.
Lenovo said it plans to produce 50,000 AI rack servers and 2,400 graphics processing unit (GPU) servers annually at its Puducherry plant. These servers are specifically designed for resource-intensive tasks such as machine learning.
“The servers are not only meant for local use but also for export,” Amar Babu, president of Lenovo’s Asia Pacific region, told Reuters.
He declined to provide information on investment or staffing requirements for the R&D lab or manufacturing plant in Puducherry, where Lenovo already manufactures laptops, notebooks and personal computers (PCs).
Demand for GPUs or AI chips has skyrocketed since the generative AI wave kicked off in late 2023, catapulting companies like Nvidia and AMD into high gear.
According to a Nasscom-BCG report published earlier this year, AI hardware is expected to capture 12 percent of the global AI market, nearly tripling in value to $380 billion by 2027.
Lenovo, which generates about 47% of its revenue from non-PC businesses, is following the likes of Apple, Foxconn and Dell in expanding manufacturing capacity in India, partly to reduce their dependence on China.
India is also attracting companies, including those focused on technology, through manufacturing-related incentives.
While the AI server manufacturing plan is not linked to any government incentive scheme, the company is benefiting from such schemes through its partnership with India’s Dixon Technologies for manufacturing PCs and Motorola phones, Babu said.
© Thomson Reuters 2024
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