Lenovo Focuses on AI Servers Production with New Lab in Bengaluru, India

Lenovo’s AI Servers Initiative in India

Lenovo is making significant strides in the AI servers domain as it commences production at its plant in southern India while establishing a dedicated AI servers R&D lab in Bengaluru. The company plans to manufacture approximately 50,000 AI rack servers and 2,400 graphic processing unit (GPU) servers yearly at the Puducherry facility, specifically engineered for intensive applications like machine learning.

Production Goals and Market Strategy

According to Amar Babu, president of Asia Pacific at Lenovo, these servers are intended for both domestic consumption and international exports. This initiative aligns with the soaring demand for AI chips following the gernerative AI trend that emerged in late 2023, a demand which has propelled the success of industry leaders such as Nvidia and AMD.

• Lenovo’s plant also produces laptops and PCs
• AI hardware estimated to capture 12% of the global AI market by 2027
• Manufacturing expansion aims to reduce reliance on China

Navigating New Opportunities

While the AI server venture is not directly linked to government incentive programs, Lenovo collaborates with India’s Dixon Technologies for PC and Motorola phone manufacturing, benefiting from existing incentives. This underscores India’s appeal to tech companies seeking to enhance manufacturing capabilities, significantly contributing to local economies.