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

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

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.

Lenovo's plans mark another win for India as Prime Minister Narendra Modi tries to attract more technology investment into the country.

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.

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.

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