Lenovo is to invest $793 million to build an integrated mobile devices facility in China.
The base will be built in Wuhan in central Hubei province, and will carry out research and development, production and sales of mobile devices.
According to Reuters the plant will begin operations in October 2013.
Lenovo said sales from the industrial base will increase five fold within the next five years.
In the third quarter ended December, Lenovo shipped 400,000 tablets globally and 6.5 million handsets, including smartphones.
In China the company is the number two tablet brand behind Apple.
The company is seeing some movement on the mobile front. Its sales of mobile internet and other digital consumer devices rose 159 percent year on year to $565 million in the quarter, largely from mobile handset sales in China.