At the Supplier Summit in April this year, Xiaomi meet with more than 50 parts manufacturing companies from all over the world and introduced the plan to build an Indian manufacturing ecosystem, hoping to work with suppliers. Create a localized production system.
According to foreign media reports, Xiaomi held a supplier investment summit in India in April this year to help non-local parts suppliers to produce locally, and the results of this plan have already begun to appear. Holitech, one of Xiaomi’s leading component suppliers, officially announced Monday that it will produce parts in India starting in the first quarter of 2019. The company has signed a memorandum of understanding with Andhra Pradesh of India to launch a local manufacturing business in Tirupati formally.
Holitech said it will invest nearly 200 million US dollars in India and become the first in India to produce compact camera modules (CCM), thin film transistors (TFTs), capacitive touchscreen modules (CTP), flexible printed circuits (FPC) and the manufacturer of fingerprint recognition sensors will also provide more than 6,000 jobs in the next three years.
Holitech’s parts manufacturing facility in Tirupati covers 75 acres and has an annual production capacity of nearly 50 million. At the same time, the plant will be equipped with an approximately 50% sterile clean room, which can be used to reduce particle contamination and control other environmental parameters such as temperature, humidity, and pressure during production.
“Mobile Phones has achieved remarkable growth in India, and we believe that Xiaomi’s plan will bring new development opportunities for India’s electronics manufacturing industry. Holitech is the most important global component supplier of Xiaomi, with the development of parts manufacturing Business, we believe that a new era of localized production is about to open, and will bring a lot of employment opportunities to promote the development of the manufacturing industry. As a company dedicated to Indian manufacturing, we are very proud to be the first to launch this initiative nationwide. And hope that other manufacturer will be reasonably priced to provide Indian users with the highest quality and best quality products,” said Manu Kumar Jain, head of Xiaomi’s Indian operations.
“If all suppliers can set up factories in India, it will lead to the largest single investment in the history of electronics manufacturing and create a lot of jobs. The plan may bring in more than Rs 150 billion in additional investment, and created more than 50,000 jobs in India.” Xiaomi said at the Supplier Summit.
In less than three months after the summit, the leading supplier, Holitech, announced its participation in the plan, which seems to prove that Xiaomi’s summit has achieved initial success. But whether the project can reduce the production costs of the Indian smartphone market in the future will take time to test.