Xiaomi supplier Dixon Technologies India is reportedly in talks to set up a massive new factory on the outskirts of New Delhi, according to a media report.
The new factory would be spread over more than 3,00,000 square feet and will largely produce Xiaomi smartphones, the report mentioned. The plant is set to be inaugurated towards the end of this month.
Dixon’s move came following India’s pressure on Chinese tech firms to use local assembly partners. But the company has not officially responded to the matter.
Dixon assembles Xiaomi’s smartphone parts because the Indian government is putting pressure on the Chinese companies to mandate everything from manufacturing to distribution of devices locally. This could eventually hamper Xiaomi’s business with its old supplying partners in India – Taiwanese Foxconn Technology Group’s Bharat FIH and China’s DBG Technology, the report added.
In a similar move this year, Xiaomi sealed a contract with India’s Optiemus Electronics for the manufacturing of Bluetooth neckband earphones, a product that was previously imported from China.
Xiaomi was once the supreme leader in India’s smartphone market but lost steam after facing heightened regulatory scrutiny. Its presence was also impacted by its over-expansion of product portfolio which by its own admission confused customers.