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Xiaomi bows to ‘Make in India’: Chinese tech giant’s supplier Dixon to set up factory in Delhi, NCR

Dixon Technologies India Ltd, a Chinese tech giant Xiaomi supplier, is preparing to inaugurate a substantial new manufacturing facility on the outskirts of New Delhi. The move is part of India’s efforts to encourage Chinese tech companies to collaborate with local assembly partners.

Dixon is committing over Rs 400 crores, or $48.2 million over three years, to this factory, which spans an impressive 300,000 square feet, equivalent to six football fields.

It is anticipated that this facility will predominantly focus on the production of Xiaomi smartphones. Individuals familiar with the matter, who chose to remain anonymous due to its confidential nature, have revealed these details. The factory is expected to be formally inaugurated by a government official later this month.

Xiaomi, headquartered in Beijing, is engaging with Dixon for smartphone assembly to adhere to India’s requirements for Chinese companies to localize various aspects of their operations, from manufacturing to distribution within the country.

This shift means that Xiaomi’s previous suppliers in India, such as Taiwanese firm Foxconn Technology Group’s Bharat FIH and China’s DBG Technology Co., may see decreased business opportunities.

Xiaomi’s collaboration with Dixon follows a similar pattern from earlier this year when the company outsourced the production of its Bluetooth neckband earphones to India’s Optiemus Electronics Ltd., a product it had previously imported from China.

Xiaomi, once a dominant force in India’s smartphone market, faced challenges due to increased regulatory scrutiny and an extensive product portfolio that led to customer confusion. However, the company remains committed to India, the world’s second-largest smartphone market, and aims for a gradual recovery by offering locally manufactured 5G smartphones at affordable prices.

For Dixon Technologies, this partnership with Xiaomi represents another significant milestone as the company strives to become India’s answer to Foxconn, the renowned Taiwanese supplier for Apple.

Founded by Sunil Vachani three decades ago with borrowed funds in a rented shed outside New Delhi, Dixon has rapidly expanded to become a prominent electronics manufacturer producing items like smartphones, washing machines, and television sets for brands including Motorola and Samsung.

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