Lenovo plans global factory expansion as Q2 results beat; eyes AI growth
Lenovo will further diversify its supply chain and plans to open more manufacturing facilities outside China amid global geopolitical uncertainty, Chairman Yang Yuanqing said.
Lenovo, the world's largest PC maker, has most of its plants in China, a common situation in the electronics industry that creates potential vulnerability as US President-elect Donald Trump threatens to impose 60% tariffs on Chinese imports.
Yang told Reuters that while it's too early to predict the new US administration's policies, Lenovo has an advantage over competitors in hedging such risks through its more diversified manufacturing base and sourcing strategy, as well as balanced regional revenue streams.
While China remains its main manufacturing base, Lenovo operates more than 30 factories in nine different markets. The company plans to open facilities in Saudi Arabia following a major investment deal with the kingdom's Public Investment Fund, Yang said.
On Friday, Lenovo reported a 24% rise in its fiscal second-quarter revenue from a year earlier. That was partly spurred by sales growth of computers that can handle artificial intelligence workloads as the global personal computer industry showed signs of recovery.
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