Foxconn’s FIH Mobile unit reportedly will start manufacturing handsets in India for local maker Micromax as well as China’s Xiaomi.
FIH closed its Chennai plant last year due to falling orders from Nokia and later from Microsoft Mobile.
FIH has set up factories in various regions to cater to expanding demand from major clients, such as Nokia (China) and BlackBerry (Indonesia).
Micromax has previously said it will strengthen its cooperation with FIH if the Taiwan-based contract manufacturer sets up production lines in India, DigiTimes said.
Xiaomi, which is FIH Mobile’s largest client, announced two weeks ago it plans to start production in the next 12 to 18 months in India, which it described as a “hugely important” market and its biggest market outside China.
FIH is expected to assemble 50 per cent of the shipments of the Xiaomi Mi Note as well as supply the casings, according to a Morgan Stanley analyst.
China’s TCL also announced plans to set up factories in India and Brazil next year to avoid high import duties as its sales expand in these fast-growing markets.