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

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-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.

Lenovo India managing director Shailendra Katiyal said on Tuesday that the company will make servers locally and also export them from its manufacturing unit in Puducherry.

Global technology company Lenovo will start manufacturing high-performance AI servers in India. It has also opened a research and development lab focused on the company's infrastructure solutions.

Lenovo India will start manufacturing 50,000 GPU-based AI servers in India next year, the company said on Tuesday.

Lenovo has announced the launch of AI server manufacturing in India alongside the inauguration of a new Infrastructure R&D lab in Bengaluru.