Hollysys, one of xiaomi's main parts suppliers, has officially announced that it will invest $200 million to build a factory in India within three years and is expected to start producing components in India in the first quarter of 2019. It has signed a memorandum of understanding with andhra pradesh
After manufacturers such as samsung, apple and foxconn announced plans to build a plant in India, one of xiaomi's main parts suppliers, Holitech, formally announced it would invest $200m over three years to build a plant in India, with production expected to begin in the first quarter of 2019.The company has signed a memorandum of understanding with the Indian state of andhra pradesh.
More than 15 Chinese handset makers have already completed their plans in India.Last year, Indian phones accounted for 11% of the world's mobile phones, up from 3% in 2014, according to the Indian cellular communications association. That figure is still climbing this year.In April, Indian officials said India had now overtaken Vietnam to become the second-largest maker of mobile phones after China.
On August 6th hollysys announced that it would build a plant in andhra pradesh, becoming the first Indian manufacturer to produce camera modules, thin film transistors (TFT), capacitive touch screen modules (CTP), flexible printed circuits (FPC) and fingerprint sensors.
The company's parts manufacturing plant, which will cover 75 acres in the city of tiropatiti in andhra pradesh, is likely to start production in the first quarter of next year and is expected to create 6,000 jobs in three years, a spokesman said.50 million parts per month.It is also the first major expansion of the company outside China.The company has 16 factories in China and Taiwan.
A few days ago, hollysys, a key supplier to xiaomi's mobile phone industry, said it would allocate a chunk of its IPO financing to developing its Indian business.
Xiaomi raised $4.5 billion in its IPO last month, according to the head of xiaomi India.The company spends 30 per cent of that on research and development, 30 per cent on building an iot platform, 30 per cent on global expansion and the remaining 10 per cent on various other expenses.
Currently, xiaomi has invested in 10 startups in India.In addition, xiaomi will also be ready to enter the high-end smartphone market in India.Jamaku also said they will further develop xiaomi's official Mi.com website.Currently, in terms of GMV (the amount of transactions on the website), xiaomi's official website has become the third largest website in India.
According to the latest report from Canalys, in the last quarter, xiaomi's smartphone market share in India increased from 18% last year to 30%. Xiaomi shipped over 9.9 million smartphones, accounting for 30.4% of the total, up 106% year on year.