Amid global shifts, Lenovo plans to shift all PC production to India and produce AI servers in Pondicherry, boosting local manufacturing and strengthening its tech footprint.
Lenovo has revealed plans to transition all PC production for the Indian market to local manufacturing within the next three years. The company also intends to start producing AI GPU servers in Pondicherry, India, to strengthen its footprint in the country’s technology sector.
This announcement follows the company’s achievement of producing 12 million units in India in 2024, with plans to increase production capacity by 40 per cent in 2025.
The production of AI servers will commence at Lenovo’s Indian facility in the current fiscal year. Additionally, Lenovo’s partnership with Ola’s AI venture, Krutrim, has led to the development of Krutrim 3, a 700-billion-parameter large language model (LLM) which is set to become India’s largest supercomputer, according to The Economic Times.
Lenovo’s decision to expand manufacturing in India comes amid ongoing global shifts in production strategies. Currently operating factories in China and Mexico, the company faces challenges due to tariffs imposed during the Trump administration. These tariffs, which are 20 per cent on China and 25 per cent on Mexico, are expected to influence Lenovo’s pricing structure in the US market.
This move to localise production is part of a broader trend, with other tech companies such as ASRock, HP, and Dell also diversifying their manufacturing away from China to reduce reliance on Chinese factories. ASRock, for instance, announced plans to shift production to Vietnam and Taiwan, while HP aims for 90 per cent of its US-bound products to be manufactured outside of China by October.
