Holitech Technology, a maker of LCD and touchscreen panels used in mobile phones,plans to invest $1billion in India by next year. The announcement comes at a time when states like Haryana, Uttar Pradesh and Telangana are vying among themselves to woo Chinese component makers, as local smartphone companies seek suppliers to move up the value chain.
Bingshuang Chen, chief executive of Holitech Technology notified that they are looking at the supply chain in India and as to how mature it is, adding that the company was waiting for research and development (R&D) expertise to grow in India so it can work directly with handset brands in India.
The Jiangxi-based component maker is among the several mobile phone manufacturers and component developers that are part of a high-level investment delegation from China on a sixday India visit till October 26. A similar event was held earlier this year as well, however, investments from component makers are yet to begin.
Though Chinese component makers are taking their time to set up shop in India, states like Uttar Pradesh are offering developed land and skilled manpower in and around Greater Noida, to hasten the pace of investment. UP secretary for information technology, Sanjiv Saran said the state will soon begin giving 200% refundable VAT (value-added tax) to companies for building manufacturing units in the state.
By Baishakhi Dutta