In compliance with government directives, Xiaomi Inc., a Chinese smartphone manufacturer, is set to collaborate with Dixon Technologies India Ltd., one of its suppliers, to establish a substantial new factory on the outskirts of New Delhi, as reported by Bloomberg News.
The Indian government has been urging Chinese companies, like Xiaomi, to localize various aspects of their operations, from manufacturing to device distribution.
According to the Bloomberg report, Dixon will invest more than ₹4 billion ($48.2 million) over the course of three years in this factory, which spans an area of over 300,000 square feet, equivalent to the size of six football fields. This facility will primarily focus on manufacturing Xiaomi smartphones and is scheduled to be inaugurated by a government official by the end of this month.
This collaboration with Xiaomi is another significant development for Dixon, a domestic company striving to become India’s answer to Foxconn, Apple’s Taiwanese supplier renowned for its production of iPhones.
Dixon, originally founded by Sunil Vachani three decades ago with borrowed funds in a rented shed near New Delhi, has rapidly expanded its operations and now manufactures various electronic products, including smartphones, washing machines, and television sets for brands such as Motorola and Samsung.
Xiaomi, once a dominant force in India’s smartphone market, faced challenges due to increased regulatory scrutiny and an overly extensive product portfolio. Nevertheless, the company is banking on a gradual recovery and aims to provide affordable locally manufactured 5G smartphones.