Lenovo Begins AI Server Manufacturing in India, Launches Infrastructure R&D Lab AI sever manufacturing and the infrastructure R&D lab is part of Lenovo's commitment to invest US$ 1 billion in AI innovation over 2023-26

Global technology major Lenovo said on Tuesday that it has started manufacturing artificial intelligence (AI) servers in India, marking a significant move in the tech industry. India will be the company's fifth such centre after the US, Hungary, Mexico, and Brazil.

The production line at Lenovo's Puducherry facility, operational since 2005, will now produce enterprise AI and GPU servers for AI workloads, designed to meet the growing demands of local and international markets.

These servers, featuring Lenovo's advanced 8-way GPU architecture, will address the booming AI infrastructure needs, with over 60% of the production slated for export across the Asia-Pacific region. With a production capacity of around 50,000 enterprise AI rack servers annually and 2,400 high-end GPU units, Lenovo said it is ramping up its supply chain to not only serve the domestic demand but also account for potential expansion into overseas markets.

"This development marks a significant step toward achieving both Lenovo's and the Indian government's 'AI for All' vision," said Amar Babu, President, Asia Pacific, Lenovo. "We remain committed to driving India's growth as an innovation hub by expanding our global manufacturing footprint and harnessing the strength of Indian talent and the industry ecosystem for technology R&D."

The Puducherry plant will manufacture five key offerings from Lenovo's portfolio, including three rack- mounted enterprise AI servers and two flagship 8-way GPU servers. These next-gen technologies are poised to drive substantial growth for Lenovo's India business in the coming year.

Infrastructure R&D lab launch

In tandem with expanding its manufacturing footprint, Lenovo has also launched a new Infrastructure R&D lab in Bengaluru strengthening its global network of 18 existing R&D labs. This Bengaluru R&D facility is one of four critical labs worldwide dedicated to Infrastructure Solutions, joining server design and development centres in Morrisville, Beijing, and Taipei.

This lab will be pivotal in the system design, development, and testing of next-generation server platforms, including hardware, firmware, and software development, Lenovo said.

"Our commitment to developing local talent and supporting India's tech economy is long-term," said Shailendra Katyal, Managing Director, Lenovo India. "With today's announcement of AI server manufacturing in India, we complete Lenovo's pocket-to-cloud technologies 'Made in India' for the world. The Infrastructure R&D Lab's focus on designing and developing next-generation mainstream servers further underscores Lenovo's dedication to 'R&D in India for the world.'"

The Bengaluru lab is equipped with advanced tools for electrical, design/testing, power characterization, thermal analysis, and compliance testing, ensuring that innovations are rigorously tested before global deployment. All future mainstream server design, developments, and new technical initiatives will be conducted at this lab.

These efforts are part of Lenovo incentivizing research and development, evident from the company increasing its global R&D spend of $2.3 billion for FY24.

Lenovo began manufacturing technology solutions in India since 2005, spanning from PCs to mobile devices. With over seven million devices produced in India during FY24, Lenovo is enhancing its manufacturing and R&D capabilities, positioning India as a crucial component of its global network, which includes over 30+ manufacturing sites across nine markets.

"As we enter the AI decade, these investments are critical to delivering best-in-class AI infrastructure and Large Language Model solutions that meet the evolving needs of our customers," said Amit Luthra, Managing Director, Lenovo ISG India. "We are excited about the growth potential this brings, not just for Lenovo, but for India as a global innovation hub."