Lenovo will be making AI servers in India and exporting to other countries and has also opened a new R&D facility in Bengaluru.

BENGALURU (Reuters) - China's Lenovo Group will start making artificial intelligence (AI) servers at its plant in southern India and opened an AI servers-focussed R&D lab in the tech hub of Bengaluru, the electronics hardware maker said on Tuesday.

India’s second largest PC maker’s bid to manufacture servers in India comes on the back of a three-year $1-billion investment in AI announced last year to develop AI platforms, computing devices and servers.

While India’s tech manufacturing sector is still small compared with China, it now makes increasingly sophisticated products such as iPhones.

Lenovo Group Ltd. started building AI servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse.

The facility will cater to the booming AI infrastructure needs, with over 60% of the production expected to be exported across the Asia-Pacific region.

The company’s Puducherry plant, operational since 2005, has been upgraded to produce enterprise AI and GPU servers.

Lenovo India will manufacture 50,000 GPU-based AI servers starting next year, alongside the establishment of its fourth largest R&D centre in Bengaluru.

China-based Lenovo has announced plans to begin manufacturing AI servers at its Puducherry plant in southern India and has established a dedicated AI servers R&D lab in Bengaluru. This initiative could position India as one of the few countries with significant AI server production capabilities.