Holitech, one of the key components suppliers of Xiaomi, has decided to set up a new plant at Tirupati with an investment of $200 million (Rs 1400 crore) over three years.
The company has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh government for the plant to be based on 75 acres of land, its first major expansion outside China.
It is to be noted that China-based Holitech Technology provides components to the world’s top five brands, excluding Apple.
Speaking to reporters, company Chief Executive Flame Chen said they will locally produce camera modules, touch screen panels, TFT (thin film transistors), flexible printed circuits and fingerprint modules exclusively for Xiaomi, starting January 2019.
According to Xiaomi India head Manu Kumar Jain, the local sourcing of these components will help reduce the prices of its smartphones in India. “From moving from assembling to making components in India will give a push to Make in India program”.
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