Xiaomi Starts PCBA Manufacturing In India, Opens 3 New Plants

 

Smartphone maker Xiaomi on Monday announced that it has opened a PCBA manufacturing plant in India making it one of the few companies to do so in the country. Besides, the firm, reported to be the biggest smartphone firm in the country by unit sales, has also opened 3 new mobile manufacturing plants in the country taking its total tally of manufacturing plant sin India to six.

The company’s first PCBA manufacturing plant was set up in Sriperumbudur, Tamil Nadu. The surface mount technology (SMT) plant, required for PCBA (printed circuit board manufacturing, was set up in partnership with Foxconn, the smartphone firm’s longtime partner.

PCBA is one of the most important components of the smartphone, and contributes to nearly 50% of the value of the phone. Xiaomi expects to ramp up its PCBA production to close to 100% of its locally produced phones within Q3 CY 2018.

HiPad is one more such partner for Xiaomi with whom the smartphone maker is making smartphones as well as batteries in its Noida plant.

“Xiaomi’s high-quality, well-designed products at honest prices have been instrumental in disrupting the Indian smartphone industry. In 2015 we extended our long-term commitment to the Indian market by joining the ‘Make in India’ programme. Today we are deepening this commitment with three more smartphone factories and our first SMT plant dedicated towards local manufacturing of PCBA units. Xiaomi is one of the pioneers in the country to start local assembly of PCBAs, and I believe we will continue to play a key role in transforming India into a global manufacturing hub,” said Manu Jain, Vice President, Xiaomi Global and Managing Director, Xiaomi India.

These announcements were made during the Xiaomi-convened ‘Supplier Investment Summit’ where the company has invited over 50 global mobile component manufacturers and suppliers from across the globe. 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.

“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. It would potentially bring in an added investment of over 15,000 crore rupees ($2.5 billion) and create as many as 50,000 job opportunities in India,” Xiaomi said in a statement.

The three new smartphone plants of Xiaomi are set up in partnership with Foxconn, are located across campuses in Sri City, Andhra Pradesh and a new campus in Sriperumbudur, Tamil Nadu with a total campus area of 180 acres. The factories with Foxconn now employ more than 10,000 people, of which more than 95% are females. 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.

Its first smartphone plant was built in partnership with Foxconn in 2015, followed by its second plant in March 2017, and its first powerbank plant (in partnership with Hipad Technologies) in November 2017. To date, over 95% of Xiaomi smartphones sold in India are made in India, the company claims.

The supplier summit starts today and continues till 11 April, 2018. The component suppliers will be visiting the states of Uttar Pradesh and Andhra Pradesh to explore and learn about investment opportunities in India, incentives offered by Center and State governments, FDI policy, industrial policy and various state sector specific policies. The objective of the summit is to educate Xiaomi’s global component suppliers about India’s smartphone industry and encourage them to establish local bases in the country.

 

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