After opening the Printed Circuit Board (PCB) assembling unit, Xiaomi in collaboration with supply partner Holitech Technology is setting mobile component manufacturing plant for its Mi and Redmi series phones, giving a boost to the Modi government's Make in India initiative.
Holitech Technology is said to be investing 200 million USD (approx. 1,378.31 Cr) over three years in the country and would be the first manufacturer in India build Compact Camera Modules (CCM), Thin Film Transistor (TFT), Capacitive Touch Screen module (CTP), Flexible Printed Circuits (FPC), and fingerprint sensor locally.
The local Andhra Pradesh government is offering incentives on tax, land and power and several other subsidies for setting up the plant in the Tirupati. The factory will be set up in a 75-acre plot with an initial production capacity of churning out 50 million units per annum. It is likely to start by Q1 2019 and the company aims to generate 6000 jobs over the next three years.
"Xiaomi has witnessed significant growth in the country and we are positive that Holitech's plans for India will set a new motion in place for the electronics manufacturing industry in India. Holitech is an important global component supplier of Xiaomi and with their entry in India, we are positive that a new era of local manufacturing will begin with several job creations and other component manufacturers also coming in. As a brand dedicated to the cause of Make in India, we are proud to be leading this initiative from the front for the entire nation and hope everyone can make best specs, highest quality products accessible to the country at honest pricing," Manu Jain, Vice President, Xiaomi and Managing Director, Xiaomi India, said in a statement.
Despite the recent price hike in Redmi Note 5 Pro and Mi TVs, they are still the most cost-effective products on the market. Now, with the announcement, fans can expect future Xiaomi products to cost much less in early 2019. Most importantly, the company will finally be able to meet the supply-demand gap.
In a separate development, Apple iPhone-supplier Wistron Corp is also expanding aggressively in India. Last month, the company announced to set up a mega 43-acre mobile manufacturing unit in Kolar, 70KM from Bengaluru. It will have a production capacity of churning out 100 million smartphone units per annum.
