In a fillip to the electronics manufacturing sector in Andhra Pradesh (A.P.), leading Chinese company Holitech Technology which supplies key components to smart-phone maker Xiaomi, on Monday signed an MoU with the State government for the establishment of its first unit in India at Tirupati with an investment of ₹1,400 crore.
The government allotted 75 acres for it in the temple town and provided various incentives for manufacturing camera modules, thin film transistors, capacitive touchscreens, flexible printed circuits and fingerprint sensors.
The MoU was signed by Principal Secretary (IT) K. Vijayanand and Holitech Technology co-founder Flame Chen in the presence of Chief Minister N. Chandrababu Naidu.
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Concrete action
Minister for IT Nara Lokesh told the media at the Secretariat that the CM had assured senior executives of more than 50 companies catering to Xiaomi at its global suppliers conclave held in Tirupati recently that the State would create the best ecosystem for making the components and took some concrete action that facilitated the entry of reputed companies like Holitech.
A host of incentives were being given under the State’s Electronics Policy to Holitech and other companies which were impressed with the vision and leadership of Mr. Naidu, the IT Minister said. It was a significant milestone in the Make in India programme which was largely confined to assembling of various products.
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Operations soon
Xiaomi Global Vice-President and Managing Director of Xiaomi India Manu Jain said Holitech’s foray into India provided a big boost to his company as it looked to consolidate its leadership in the smart-phone market across geographies.
Mr. Chen said the company would start manufacturing by the first quarter of 2019.