Xiaomi India has announced that it is teaming up with Holitech Technology, its key component supplier to bring component manufacturing to India. As part of the partnership, Holitech will start manufacturing smartphone components for Xiaomi in Tirupati in Andhra Pradesh. According to the announcement Holtech will invest about $200 million in India to become the first manufacturer to make Compact Camera Modules (CCM), Capacitive Touch Screen module (CTP), Flexible Printed Circuits (FPC), and Thin Film Transistor (TFT) in the country. The company will kick-off the manufacturing from Q1 2019 and it is planning to employ 6000 people within three years.
Going into details about the manufacturing facility where all these components will be made, the plant will be spread across 75 acres of land. The announcement claims that the plant will start mass production with the capacity to made about 50 million units each of the components mentioned above per year. The plans will also be the first to “boast” a “nearly 50 percent clean room” which is the first for the smartphone manufacturing industry in the country. If you are not aware of what a clean room is, then it is a room where equipment is installed to “reduce” the particulate contamination while controlling other environmental parameters such as the air pressure, humidity, and temperature.
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Vice President of Xiaomi and Managing Director of Xiaomi India, Manu Kumar Jain stated, “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.”
Flame Chen, the Co-Founder and CEO of Holitech Technology added, “The phenomenal growth of Xiaomi along with their initiatives to promote local manufacturing has encouraged us to explore component manufacturing for Xiaomi in India.” Mr. Nara Lokesh, Minister of Information Technology for Andhra Pradesh went on to add, “Andhra Pradesh is one of the youngest pioneering states of India. The state has a young entrepreneurial spirit and poses an attractive destination for similar minded companies.” This partnership is likely to push forward the Make in India initiative where the government is encouraging manufacturers to invest in infrastructure to make essential components and equipment locally.