Riyadh – Sharikat Mubasher: Chinese technology company Lenovo revealed that it will begin pilot production at its new manufacturing facility in Saudi Arabia next month, marking a significant step in its regional expansion strategy.

As reported by Al Arabiya, the factory will host production lines for desktop computers, laptops, smartphones, and servers, positioning the Kingdom as a key hub in Lenovo’s global supply chain.

The move comes as the company faces unprecedented pressure on computer components, driven by surging global demand for artificial intelligence technologies. Lenovo said it is stockpiling large quantities of memory chips and other essential parts to mitigate potential shortages.

Lenovo said that its inventory levels for these components are now about 50% higher than usual, at a time when rapid expansion of AI data centers is pushing component prices to record highs.

Last week, Lenovo announced that it has secured enough memory chips to cover its production needs through all of 2026, providing a buffer against supply disruptions and giving it an advantage over competitors navigating the same market pressures.