China’s Holitech in US$200m India move

MOBILE-PHONE maker Xiaomi announced yesterday the signing of a memorandum of understanding with its key components firm, Holitech Technology, to start manufacturing key components in the southern Indian state of Andhra Pradesh.

According to Xiaomi, Holitech will invest nearly US$200 million in India over the next three years, and would be the first manufacturer in the country to make camera modules, thin film transistors, capacitive touch screen modules, flexible printed circuits and fingerprint sensors.

The manufacturing facility is likely to start by the first quarter of next year, and is expected to generate 6,000 jobs in three years.

This is being described as Holitech’s first major expansion outside China. The company currently has 16 factories in China.

Holitech’s component manufacturing plant will cover 30.4 hectares in Tirupati city and start mass production with nearly 50 million components per month.

The plant will also boast of nearly 50 percent “clean rooms,” a contained space where provisions are made to reduce particulate contamination and with strict control over other environmental parameters such as temperature, humidity and pressure.

Andhra Pradesh government sources revealed that the state government has extended several incentives for the establishment of the manufacturing plants in terms of tax breaks, land and power subsidies, among others.

Holitech CEO and co-founder Flame Chen said: “The phenomenal growth of Xiaomi along with their initiatives to promote local manufacturing in India has encouraged us to explore component manufacturing for Xiaomi in India.”