Xiaomi’s Component Supplier, Holitech Sets Up A Massive Manufacturing Unit In Noida

India was one of the first countries where the Chinese smartphone maker, Xiaomi launched its offerings. The company over the last few years due to value for money products has seen significant growth in the Indian market. To further increase its affinity with the local customers, the company has been promoting locally assembled devices. The “Make In India” movement initiated by the Indian government has also been well embraced by the company. To take the local assembly step further, Xiaomi’s key component supplier Holitech has set up a massive plant in the city of Greater Noida.

Speaking of “Make In India” movement, several companies including Xiaomi, imported key components of smartphones from China which were locally assembled into functional smartphones. This partial local manufacturing has also seen somewhat of a backlash from users who were aware of this strategy. However, it must be noted that these companies were forced into opting for the aforementioned choices. As manufacturing of vital components like display, chipset, fingerprint sensors takes state of the art infrastructure for which takes a lot of capital upfront.

With the growing demand for smartphones and conditions favourable for setting up large assembly units, Holitech has inaugurated the is first assembly facility in Noida which spans across 25000 square metres. Talking about investment figures, the company will invest a sum of over 200 Million USD in it over the next three years. Noteworthy, the manufacturing unit will reportedly generate 6000 jobs.

The components that Holitech Technology will manufacture locally in the Greater Noida plant include Compact Camera Modules (CCM), Capacitive Touch Screen module (CTM), Thin Film Transistor (TFT), Flexible Printed Circuits (FPC), and fingerprint modules. Praiseworthy, the Holitech plant also boasts of class 1000 and class 100 clean room which is an industry first. A cleanroom is a contained space where provisions are made to reduce particulate contamination and control other environmental parameters such as temperature, humidity and pressure. 

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All in all, this is a positive step for Xiaomi’s growth in the country. Although not discussed by the company officials, locally assembled components might further drive down the costs of smartphones which are already aggressively priced.