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.

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

Lenovos plans mark another win for India as Prime Minister Narendra Modi tries to attract more technology investment into the country. While Indias tense relationship with China has suffered setbacks in recent years,

Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse.

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.

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

Lenovo India will manufacture 50,000 GPU-based AI servers starting next year, alongside the establishment of its fourth largest R&D centre in Bengaluru.

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.