Lenovo aims to produce AI-powered PCs in India this year, highlighting its efforts to expand and diversify its supply chain in the world's fastest-growing major economy.

“It’s in the early stages, but we need to first comply with the local government policy,” said Ivan Cheung, Vice President & Chief Operating Officer, Asia Pacific,  Lenovo (AP) to Indian Express at an event in Yokohama, Japan. “We need to focus on manufacturing and serving the Indian demand first before expanding the plant and manufacturing capability.”

The world’s largest PC maker already produces some of its commercial PCs in India at a facility in Puducherry, while contract manufacturer Dixon assembles Motorola smartphones. However, Lenovo is now looking to manufacture advanced AI-powered PCs in the country, aiming to expand its local production footprint and leverage the government’s production-linked incentive scheme.

“Besides just manufacturing for India, we are also looking to leverage India as a manufacturing hub. For smartphones, we are already doing this; we manufacture smartphones in India and export them to North America. For PCs, we also have a similar plan, leveraging India as part of our diversification strategy,” Cheung added.

Cheung declined to reveal whether the company plans to manufacture entry-level AI PCs or premium ones but mentioned that they are looking at high volumes. “I think it will be quite comprehensive, and the expectation for us to meet the new manufacturing requirements is quite high. The volume will be substantial, and I would say across both commercial and consumer products as well.”