The investment will see the construction of an electronics manufacturing site spanning 30.3 hectares
Holitech signs MOU for major investment in India
Holitech, the Chinese manufacturer and solutions provider in the electronic field, has signed a memorandum of understanding (MOU) with the government of the Indian state of Andhra Pradesh on investment in electronics manufacturing in the country.
The signing ceremony, held on 6 August, was attended by the Governor of Andhra Pradesh, Nara Chandra Babu Naidu, Chen Guisheng, Holitech president and Manu Jain, vice president of Xiaomi, the Chinese electronics company headquartered in Beijing.
The component manufacturing plant in Tirupati will be spread across 30.3 hectares (75 acres) of land and nearly 50% of the space will be cleanrooms
According to the MOU, Holitech will invest US$200 million in a new plant in Tirupati, southern Andhra Pradesh, to produce camera modules (CCM), color liquid crystal display (TFT), capacitive touchscreen modules (CTP), flexible printed circuit board (FPC) and fingerprint identification module (BR). The project would create about 6,000 jobs for the next three years in the local area.
Cleanroom Technology understands the component manufacturing plant in Tirupati will be spread across 30.3 hectares (75 acres) of land and that nearly 50% of the space will be cleanrooms.
The production capacity is said to start with nearly 50 million each component per year.
Xiaomi has witnessed significant growth in India and according to Manu Kumar Jain, head of Xiaomi India, the company is positive that Holitech's plans for India "will set a new motion in place for the electronics manufacturing industry" in the country.
The news follows on from the Xiaomi's Supplier Investment Summit held in April. The company hosted over 50 component companies from around the world to showcase the manufacturing ecosystem in India with the aim of helping them set up local manufacturing units in the country.
Xiaomi believes that if all the suppliers set base in India, this would lead to one of the biggest ever single investment in the electronic manufacturing industry, creating a big pool of jobs.