[News] Lenovo Aims for 100% Local PC Production in India, with AI Server Production to Kick off Soon

According to a report from ijiwei, citing Fortune India, Lenovo has announced plans to manufacture all PC models for the Indian market locally within the next three years. Notably, the company also intends to produce AI GPU servers in Pondicherry, India.

As noted by the report, Lenovo announced that it had produced 12 million units from India in 2024 and expects a 40% increase in production capacity in 2025.

The company reveals that AI server manufacturing at its facility in India will begin this fiscal year, further reinforcing India’s position in enterprise AI deployment and cloud computing, as the report notes.

Meanwhile, Ola’s artificial intelligence (AI) venture, Krutrim, has announced a partnership with Lenovo to develop Krutrim 3, a 700-billion-parameter large language model (LLM), India’s largest supercomputer, as noted by The Economic Times.

Regarding Lenovo’s decision to expand production in India, a report from Tom’s Hardware highlights that the company, a Chinese manufacturer, currently operates five factories in China and one in Mexico, while holding a 12% share of the U.S. laptop market. The report suggests that President Trump’s tariffs—20% on China and 25% on Mexico—are expected to significantly impact Lenovo’s pricing strategy.

Lenovo isn’t the only company shifting production away from China to avoid Trump’s tariffs. According to Tom’s Hardware, ASRock announced in early February that it will relocate its manufacturing operations to Vietnam and Taiwan. Similarly, HP recently revealed that by October this year, 90% of its U.S.-bound products will be produced outside of China. Even Dell has planned to diversify its supply chain, signaling a move to reduce dependence on Chinese factories for its manufacturing operations, as noted by Tom’s Hardware.

Read more

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(Photo credit: Lenovo)