Xiaomi Announces Opening Of 3 New Smartphone Plants Under Its 'Make In India' Initiative

| April 9 , 2018 , 14:58 IST

Xiaomi's first-ever "Supplier Investment Summit" took place in New Delhi on Monday where Xiaomi announced the opening of 3 new smartphone plants in India as a major expansion under Make In India. Along with this, the company also announced it's first Surface Mount Technology (SMT) plant in Chennai that will manufacture printed circuit board assembly (PCBA) units in the country.

Earlier this month, the government imposed a 10 percent tax on imports of key smartphone components, including PCBs. 

PCBA is the process of soldering or assembly of electronic components to a PCB or printed circuit board. It is one of the most important components of the smartphone and contributes to nearly 50 percent of the value of the phone. 

SMT is a method for producing electronic circuits in which the components are mounted or placed directly on to the surface of PCBs.

Over 50 global smartphone component suppliers attended the 3-day summit, with the aim of helping Xiaomi to set up local manufacturing units in India. Xiaomi India said that if all the suppliers set their base in India, this would potentially bring in an added investment of over Rs 15,000 crore and create 50,000 job opportunities.

The summit was inaugurated by Amitabh Kant (CEO Niti Aayog), Ramesh Abhishek (Secretary DIPP) and Deepak Bagla (CEO Invest India).

In the summit, Manu Jain (Vice President Xiaomi Global) & MD Xiaomi India said that Xiaomi is one of the pioneers in the country to start printed circuit board assembly (PCBA).

Addressing the media, Manu Jain said, "Xiaomi's well-designed and high-quality products have been instrumental in disrupting the Indian smartphone industry at honest prices. I believe we will continue to play a key role in transforming India into a global manufacturing hub."

The 3 new smartphone plants are located across campuses in Sri City, Andhra Pradesh and a new campus in Sriperumbudur, Tamil Nadu in partnership with Foxconn.

The factories with Foxconn now employ more than 10,000 people, of which more than 95 percent are women.

Xiaomi India said, "Additionally, all of the assembly work is done by women. The new factories will result in an increased production capacity of two smartphones/second during operational hours".

With this Make In India initiative, Xiaomi has also become one of the pioneers in the country to start local assembly of PCBAs. Xiaomi expects to ramp up its PCBA production to close to 100 percent of its locally-produced phones within the third quarter of the calendar year 2018.

With the new factories, Xiaomi says will be capable of producing two smartphones per second during operational hours.