China's Holitech to set up handset component plant in Andhra
07 August 2018
Chinese mobile component supplier Holitech Group plans to set up set up a production facility in Tirupati, Andhra Pradesh.
The project, estimated to cost Rs1,400 crore, will supply mobile phone components like camera modules and touch panels to Chinese smartphone maker Xiaomi.
According to Holitech, the facility is expected to be operational in the first quarter of 2019, and will employ 6,000 people in the next three years.
Holitech Technology CEO Guisheng Chen told reporters, the facility will cater exclusively to Xiaomi and have an annual capacity of 50 million component sets at the end of phase I, which will be ramped up to 100 million within three years’. The components that will be made at the Tirupati facility include camera modules, TFT (thin film transistor), flexible printed circuit, touch panels and fingerprint modules.
“The facility in India is our first international foray. We expect to see revenue of USD 2 billion from here after phase II,” Chen said.
In April, Xiaomi had hosted a global meet in Delhi that saw participation from 50 of its global suppliers. The company, at that time, had said these suppliers setting up manufacturing base in India would bring in Rs 15,000 crore in investment and create 50,000 jobs.
Xiaomi Vice President and India Managing Director Manu Jain said local manufacturing of components could bring down prices of mobile phones. Holitech, which supplies to other global handset makers also, has 16 factories in China and Taiwan and employs about 30,000 people.