Lenovo Expands Manufacturing Outside China

Lenovo, the world's largest PC maker, is expanding its manufacturing footprint beyond China to mitigate risks associated with geopolitical tensions and potential U.S. tariffs on Chinese imports. The company plans to establish new facilities in Saudi Arabia, leveraging a major investment from the kingdom's Public Investment Fund. In its latest earnings report, Lenovo announced a 24% increase in fiscal second-quarter revenue, reaching $17.9 billion, due in part to rising demand for AI-capable PCs. The company aims for AI products to constitute 25% of its shipments by 2025 and 80% by 2027, reflecting a strategic focus on AI technology. Lenovo operates over 30 factories in nine international markets, positioning itself advantageously amidst industry challenges. This diversification strategy, combined with robust growth in AI-driven solutions, underscores Lenovo's commitment to sustaining its market leadership and responding to global dynamics.