The company said Tuesday it has started making large, powerful computers in Pondicherry in southeastern India, going beyond products such as laptops and smartphones. The Chinese company will also build its facilities in the Bangalore region, including a research lab focused on artificial intelligence.
Lenovo’s plans mark another win for India as Prime Minister Narendra Modi tries to attract more investment in technology While India’s tense relationship with China has suffered setbacks in recent years, global tech companies see it as an attractive option to build operations at a time when Beijing and Washington are locked in a trade war.
The servers perform the calculations necessary to run the services, including Generative AImade famous by apps like ChatGPT. The addition of AI servers means Lenovo will manufacture its entire hardware range in India for both domestic and export markets, underlining the importance of the country to the company.
While India’s tech manufacturing sector is still small compared to China, it has been gaining ground and is now making increasingly sophisticated products, such as iPhones. AI servers represent another milestone, showing that India can offer an alternative to regions with more established high-end manufacturing industries.
Taiwan currently produces the bulk of the world’s artificial intelligence servers, which are used by tech giants including Amazon.com Inc., Microsoft Corp. and Nvidia Corp. But with geopolitical tensions rising between China and the West, companies are under pressure to move manufacturing out of Taiwan. Demand for generative AI tools and applications has boosted the need for related hardware, with electronics maker Foxconn Technology Group predicting last year that annual sales of AI servers could reach $150 billion by 2027.
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