Lenovo eyes PC designing in India to complete manufacturing stack, says MD Shailendra Katyal

At present, Lenovo manufactures desktops and PCs locally, alongside all Motorola smartphones sold in India. The company has around 1,700 employees in India across three manufacturing sites.

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Chinese technology major Lenovo could explore designing personal computers in India to complete the entire manufacturing stack in the country and capitalise on local talent, its top India executive told ET. “The design-to-delivery is already there for phones, an end-to-end ecosystem. If you look at servers, the design capability is for 80% of the addressable portfolio.

We brought in the mainstream and the GPU practices. I think the only thing which could be pending is, maybe, the PC design part. Because everything else we are doing.



We can always raise that topic to move some of the PC design here, to leverage the Indian talent for that as well,” said Shailendra Katyal , managing director of Lenovo India. At present, Lenovo manufactures desktops and PCs locally, alongside all Motorola smartphones sold in India. The company has around 1,700 employees in India across three manufacturing sites.

Speaking of India as an attractive destination, Katyal said the country has a big revenue opportunity along with a talent pool. “The strong talent hub started with manufacturing and now it’s going into the engineering and the designing part as well. So, it is a train which is in motion.

It will only gather speed,” Katyal said in an interview after announcing Lenovo’s plans to manufacture artificial intelligence (AI) servers in India. The $57-billion hardware-focused technology firm on Tuesday said it has started building AI servers from India to complete its full stack portfolio to be now made in India. The firm said it will begin making AI servers in its Puducherry facility and has launched its AI-focused R&D lab in Bengaluru.

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Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The Bengaluru lab will focus on developing and testing new server platforms including hardware, firmware, and software. It is part of Lenovo’s global R&D network of 18 labs, with four critical labs in the US, China, and Taiwan. Currently, Taiwan produces the bulk of the world’s AI servers, which are used by technology giants including Amazon, Microsoft and Nvidia.

In India, Katyal said while the company is participating in the IT hardware production linked incentive (PLI) scheme, its application before the Centre for the government supplies market has been pending since November last year. “Because of GFR (general financial rules), which came in 2020, right now, the government market is not addressable for us in some form. It’s an important part of the market, and the request is pending with the government,” he said.

Lenovo has evolved in India from a sales and marketing setup. The company set up a research & development (R&D) centre for its mobile device brand Motorola in India 10 years ago and has been manufacturing in the country since 2005. It produced over seven million devices last year.

It has expanded into web development, analytics and building solutions out of India with the growing software coding talent here. It is also working on CX or customer experience technology based here. Katyal expects seeing newer job roles in the space relating to cyber resiliency and remote infrastructure monitoring.

For now, the Puducherry plant will produce enterprise AI and GPU servers for AI workloads, designed to meet the growing demands of local and international markets. These servers, featuring Lenovo’s advanced 8-way GPU architecture, will address the booming AI infrastructure needs, with over 60% of the production slated for export across the Asia-Pacific region..