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.

Another win for the Make In India policy, but a small one in terms of product volume Lenovo revealed on Tuesday that it will manufacture AI servers at its plant in Puducherry, India, and has opened a new infrastructure research and development lab in Bengalaru.

AI sever manufacturing and the infrastructure R&D lab is part of Lenovo's commitment to invest $1 billion in AI innovation over 2023-26

In this news analysis, features, Lenovo's significant investment in AI and infrastructure in India its commits to driving the country's digital transformation.

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.

Lenovo (OTC: LNVGY) expands AI server production in India & aims to export 60% of output to Asia-Pacific amid growing market projected for 18% CAGR.

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

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