Xiaomi opens mobile component manufacturing plant in UP

Popular smartphone-maker, Xiaomi in collaboration with Holitech Technology has set up a component manufacturing plant in Greater Noida, Uttar Pradesh.

The new plant is spread across 4 factories and spans over 25,000 square meters and will start mass production with a production capacity of over 300 million components per annum. The plant also boasts of class 1000 and class 100 clean room, an industry first. A cleanroom is a contained space where provisions are made to reduce particulate contamination and control other environmental parameters such as temperature, humidity, and pressure, the company claims.

“Xiaomi has witnessed significant growth in the country and we are positive that Holitech’s plans for India will herald a new stage of evolution for the electronics manufacturing industry in India. Holitech is a leading global component supplier and with their entry in India, we are positive that a new era of local electronics component manufacturing will begin fostering job creation and encourage the entry of other component manufacturers in India. As a brand dedicated to the cause of Make in India, we are proud to be leading this initiative from the forefront and hope to reinforce our commitment to delivering products with best specs, highest quality and honest pricing in India,” Muralikrishnan B, chief operating officer, Xiaomi India said.

Holitech is said to be investing around $200 million (approx. 1,386.6 crores) over the next three years in India. It would be manufacturing Compact Camera Modules (CCM), Capacitive Touch Screen module (CTP), Thin Film Transistor (TFT), Flexible Printed Circuits (FPC), and fingerprint module locally.

Redmi 7; Picture credit: Rohit KVN/DH Photo

“The phenomenal growth of Xiaomi along with their initiatives to promote local manufacturing has encouraged us to explore component manufacturing for Xiaomi in India. We are pleased to bring several industry firsts to the state of Uttar Pradesh with the manufacturing of camera modules, CTP, TFT, FPC, and fingerprint module and propel the growth of component manufacturing in India. We hope to further boost this initiative by setting an example for other component manufacturers, and being a part of Xiaomi’s growth in India,” Chenguisheng, CEO, Holitech Technology said.

The local manufacturing unit is ready and will commence the production before the end Q3, 2019 (September) and it aims to generate 6000 jobs in three years.

“Uttar Pradesh is one of the youngest pioneering states of India. The state has a young entrepreneurial spirit and poses an attractive destination for similarly minded companies. Our state of the art infrastructural offerings make Uttar Pradesh an exciting investment opportunity and it is heartening to see Holitech Technology come to the state and initiate a big revolution in the market for local manufacturing,” Dr. Dinesh Sharma, Deputy Chief Minister, Uttar Pradesh said.

So far, Xiaomi in collaboration with Flex (formerly Flextronics), Holitech, and Foxconn, has already set up seven assembling units for mobiles, accessories including chargers, USB cables, power banks and also smart televisions across India. It can be noted 99 percent of the Mi and Redmi phones sold in India are assembled locally.

Xiaomi's new initiative bolsters the Modi-led government's Make in India project that envisions India to be the global manufacturing hub.

Besides Xiaomi, Samsung, Lenovo (Motorola), Oppo and Vivo are also assembling the phones in India.

Even Apple's iPhone supplier Wistron Corp is currently assembling iPhone 6S series in its Peenya unit, an industrial hub west of Bengaluru. It is also said to be setting up a 43-acre mobile manufacturing unit in Kolar, 70KM from Bengaluru. It will have a production capacity of churning out 100 million smartphone units per year.

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