BENGALURU — Chinese component maker, Holitech Technology, who is also a major supplier for Xiaomi smartphones, plans to invest $200 million in three years for a local manufacturing plant in India.

The company has signed a memorandum of understanding (MoU) with the state of Andhra Pradesh and will start local manufacturing in the temple city of Tirupati for Xiaomi.

The plant would be spread across 75 acres of land in the city of Tirupati and is likely to start production with a capacity of nearly 50 million components per year. The plant will have a nearly 50 per cent clean room.

The local manufacturing is likely to start in the first quarter of 2019, where Holitech Technology will manufacture compact camera modules (CCM), thin film transistor (TFT), capacitive touchscreen module (CTP), flexible printed circuits (FPC), and fingerprint sensor locally at the Andhra Pradesh facility.

This investment is likely to generate 6000 jobs in three years.

Flame Chen, co-founder and CEO, Holitech Technology said, "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 Andhra Pradesh with the manufacturing of camera modules, TFT, CTP, FPC and fingerprint sensors and high-quality clean room construction and propel the growth of component manufacturing in India."

According to Manu Jain, Vice President, Xiaomi and Managing Director, Xiaomi India, the company has witnessed significant growth in the country and is 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," he added.

— Sufia Tippu is a freelance tech journalist based in India contributing to EE Times India