Xiaomi claims that over 95% of all its smartphones sold in India are locally assembled. According to reports, the new facilities at Tamil Nadu and Andhra Pradesh will manufacture a wide range of smartphones and printed circuit boards (PCB).
Xiaomi started assembling phones in India back in 2015 - committing to the government's Make in India initiative - and now the company is announcing that it is launching three new smartphone manufacturing facilities in the country. With the particular component making up nearly 50% of the value of a phone, Xiaomi is looking to save costs by manufacturing it locally. This PCBA will be manufactured at Xiaomi's first SMT (Surface Mount Technology) plant which is built in partnership with Foxconn in Sriperumbudur, Tamil Nadu, and, the company expects to bump up the production of PCBA to around 100% of its locally produced phones within Q3 2018.
"In 2015 we extended our long-term commitment to the Indian market by joining the "Make in India" program". Announcing this at the first-ever "Supplier Investment Summit" being held in the Capital, Manu Jain, Vice President, Xiaomi Global and Managing Director, Xiaomi India said that Xiaomi is one of the pioneers in the country to start local assembly of PCBA.
Xiaomi said that if all its suppliers set up shop in India, that could bring investments worth over $2.5 billion into the country and create as many as 50,000 jobs.
These will double Xiaomi's manufacturing capacity in India to two phones per second during operational hours, and would employ over 10,000 people of which 95% will be women employees, Jain said.
Commenting on the development, Manu Kumar Jain disclosed that the company already had two manufacturing plants for the manufacture of smartphones in India.
Xiaomi said late last week that the firm, which enjoys strong sales in the country due to the Chinese smartphone maker's entry-level offerings, is pushing ahead with fresh investment in India. We believe that this will help our suppliers assess and expand the manufacturing base in the country.
"We are starting an SMT line for PCB assembly. one of the key challenges that the Indian electronics industry faces is that the local value addition is about 10% of the industry". If it goes through then this is said to be the biggest ever single investment in the electronic manufacturing industry, one that can create as many as 50,000 job opportunities. The objective of the event is to apprise these suppliers of the Indian manufacturing ecosystem with the aim of helping them to set up local manufacturing units in India.
The supplier summit starts today and continues till 11 April, 2018. Xiaomi has partnered with Foxconn for the SMT plant.