Lenovo is positioning India as a strategic export hub for its infrastructure business with plans to design and develop artificial intelligence (AI) servers locally for global markets. The technology major will undertake design work for one-socket and two-socket AI servers in Bengaluru, which are expected to form the backbone of AI computing systems, while final assembly will take place in Pondicherry for both domestic and international customers. The initiative underlines India’s growing prominence in the global technology supply chain and follows Lenovo’s selection under the government’s ₹17,000-crore IT hardware Production-Linked Incentive (PLI) scheme.

Speaking at CES 2026 in Las Vegas, Lenovo Infrastructure Solutions Group Vice President and General Manager Scott Tease highlighted that the company’s immediate priority is to cater to India’s expanding AI infrastructure needs. However, he noted that India’s deep engineering talent base, cost advantages, and existing manufacturing capabilities offer significant potential to transform the country into a major export centre for server manufacturing.

Tease also acknowledged the cost challenges associated with high-performance computing for MSMEs, suggesting that hybrid AI deployment models could help address affordability concerns. Under such models, heavy computing loads could be handled through cloud-based service providers, while lighter inference tasks could run on locally manufactured, cost-efficient hardware. This approach is expected to make AI adoption more accessible for smaller businesses, while simultaneously boosting India’s role in advanced technology manufacturing and exports.

Summary

Lenovo is set to turn India into a global base for AI server design and manufacturing, with product design taking place in Bengaluru and assembly in Pondicherry for both domestic and overseas markets. Benefiting from the government’s IT hardware PLI scheme, the company aims to first meet India’s AI infrastructure needs and later expand exports, leveraging the country’s engineering talent and manufacturing strengths. Lenovo also plans hybrid AI models to reduce computing costs for MSMEs, enabling heavy workloads to run on cloud services while lighter tasks operate on cheaper, locally produced hardware, reinforcing India’s rising role in the global technology value chain.

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