Lenovo (HKSE: 992) (ADR: LNVGY) is a $ 46 billion US dollars of the “Fortune” Global 500 company, is a global leader in consumer, commercial and enterprise innovation and technology, In Jan 2014, Lenovo agreed to acquire the mobile phone handset maker Motorola Mobility from Google, and July 2014, acquire whole X86 server business from IBM.
Why Lenovo need this project?
Then, CIFUIS approved Lenovo’s X86 acquisition proposal from IBM on the condition that all the X86 servers sold in U.S have to be exclusively built in Lenovo owned plants located in Mexico and U.S. this strict regulation requirement brought about the Bohemia Project (core parts are new APO、new VMI and new CFE system), which is the key point on maintaining and expanding Lenovo business in North America.
Bohemia Project is designed to enable X86 manufacturing capability and build E2E supply chain IT platform in USFC and Monterrey plants (existing PC plants in North Carolina, US and Monterrey, Mexico, Shenzhen). Hence to realize 2 main goals which are: meeting CFIUS’s strict regulation and decreasing the cost per piece.
Why Lenovo need this project?
Then, CIFUIS approved Lenovo’s X86 acquisition proposal from IBM on the condition that all the X86 servers sold in U.S have to be exclusively built in Lenovo owned plants located in Mexico and U.S. this strict regulation requirement brought about the Bohemia Project (core parts are new APO、new VMI and new CFE system), which is the key point on maintaining and expanding Lenovo business in North America.
Bohemia Project is designed to enable X86 manufacturing capability and build E2E supply chain IT platform in USFC and Monterrey plants (existing PC plants in North Carolina, US and Monterrey, Mexico, Shenzhen). Hence to realize 2 main goals which are: meeting CFIUS’s strict regulation and decreasing the cost per piece.
