Home >Companies >Foxconn to make Xiaomi phones in India

Hyderabad: Foxconn Technology Group, the world’s biggest contract manufacturer, will begin its second leg of manufacturing in India by producing Xiaomi smartphones in Andhra Pradesh.

The company has leased a facility in Sri City in southern part of Andhra Pradesh to begin production on a small scale, The Economic Times reported on Wednesday, citing a source.

Foxconn’s Sri City plant, about 55 km north of Chennai, will produce 10,000 phones a day for Xiaomi Corp., the world’s seventh biggest phone seller, according to technology researcher Gartner Inc.

Foxconn is scouting at least six states to build 10-12 factories over the next five years at an investment of $2 billion in line with the government’s Make in India initiative. The states are Andhra Pradesh, Telangana, Karnataka, Maharashtra, Gujarat and Uttar Pradesh.

India is one of the fastest growing phone markets in the world. With a large part of the population not owning a mobile handset device, and an even lesser percentage owning smartphones, the country of 1.2 billion presents a huge opportunity for phone makers such as Samsung, LG, Lenovo, Xiaomi, Apple and Microsoft, some of which are Foxconn customers.

The Taiwan-based company is known for manufacturing Apple’s iPhones and iPads. It also makes Kindle e-book readers for Amazon Inc, besides devices and equipment for top technology companies such as HP, Cisco and Dell.

This will be the second stint for Foxconn in India, where it had to shut down three component-making units for Nokia (now renamed Microsoft), whose phone-making facility near Chennai was closed down following a tax dispute with authorities. The last of Foxconn’s plants was shuttered in February.

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