Beijing-based Lenovo made public its commencement of producing AI-powered servers at its plant in India, considered to be a significant step forward to help the nation to become a high-tech powerhouse.

Another major news announced by the tech giant is that it plans to open its fourth research and development (R&D) center worldwide in Bangalore.

It is the world's fourth such R&D facility and infrastructure, with the other three seated in Beijing, Taipei, and Morrisville, US.

In committing to its word on R&D, this lab is expected to place the radar on all upcoming server designs, innovations, and technical efforts. These advancements are a component of the $1 billion investment that the firm announced in 2023 to be made over the next three years.

The company said that it now plans to focus on producing massive, powerful computers in Pondicherry, southeast India.

While it’s at it, the company looks to grow its Bangalore-area operations, in hopes to include an artificial intelligence research facility.

Its current base, the Puducherry factory, is expected to meet demand from both national and international markets. It plans to allocate more than 60 percent of the production for export to the Asia-Pacific area.

Two flagship 8-way GPU servers and three rack-mounted enterprise AI servers are among the five main products that the factory is said to produce.

Roughly 20 years ago, Lenovo started manufacturing in India, and roughly ten years ago, it started working on Motorola R&D. It recently hit significant milestones, like as the introduction of a Global Shared Support Center and PCs with motherboards built in India that comply with PMA regulations.

Even though India's tech manufacturing industry is still modest in comparison to China's, it has been catching up and is already producing increasingly complex items like iPhones. Another significant development is the introduction of AI servers, which demonstrate that India can compete with more developed high-end manufacturing countries.

The majority of AI servers utilized by tech behemoths like Microsoft Corp., Nvidia Corp., and Amazon.com Inc. are currently made in Taiwan. Businesses are under pressure to move their industrial operations outside of Taiwan, though, as geopolitical tensions between China and the West continue to escalate. Hardware connected to generative AI is in high demand due to its applications and tools.