Xiaomi aims to source over 50% smartphone components in India by 2025

Xiaomi plans to increase local sourcing of components for its smartphones in India through new partnerships with local component manufacturers. The company, which has completed ten years in India, will now be expanding and deepening the component ecosystem within the country. Xiaomi has also set an ambitious target to sell 350 million devices over the next ten years. As of 2023, 35 percent of the non-semiconductor bill of materials (BoM) for a phone is locally sourced in terms of components.

"As of 2023, 35 percent of the non-semiconductor bill of materials (BoM) for a phone is locally sourced in terms of components. Over the next two years, our strategy is to broaden and deepen the component ecosystem locally. We aim to source 55 percent of the non-semiconductor BoM or components locally," said Muralikrishnan B, president at Xiaomi India.

The Bill of Materials (BoM) in a smartphone refers to a comprehensive list of all the components, parts, and raw materials required to manufacture the device. This includes everything from the smallest electronic components to the casing and packaging materials.

Muralikrishnan further added that in terms of domestic value addition, the net value addition in Xiaomi smartphones was 18 percent in the financial year (FY) 2023. “With our focus on deepening and broadening the component ecosystem, we expect to take that number to 22 percent by FY25," he said.

Xiaomi's plans are in line with the Ministry of Electronics and Information Technology's (MeitY) upcoming incentive scheme, set to launch in August-September. This subsidy program with an anticipated outlay of Rs 30,000-40,000 crore for electronics components manufacturing is part of the government's 100-day agenda.