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Chinese companies to set up first smartphone manufacturing plant in Faisalabad

Azure

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Chinese companies to set up first smartphone manufacturing plant in Faisalabad




Two Chinese tech companies have reached an agreement at the Faisalabad Industrial Estate Development and Management Company (FIEDMC) office to set up a smartphone manufacturing plant in Faisalabad.

According to the details, the agreement was penned between Vice President VIVO Duam Tai Ping and Director Manufacturing Zhang Bin in the FIEDMC office. Provincial Minister for Industry and Commerce Mian Aslam Iqbal was also present while the agreement was finalized.

As per the agreement, Chinese companies will jointly set up the first smartphone manufacturing plant at M3 Industrial Estate, Faisalabad. Initially, Chinese companies will invest $10 million in the project. With the setup of the manufacturing plant, smartphones will be manufactured locally.

The Provincial minister welcomed the development, saying that local investors are turning towards Punjab due to the beneficial policies of the Punjab government. The provincial minister said that the investors will be provided facilities and complete protection on a priority basis.

This development will not only promote employment opportunities for the locals, but will also boost the local smartphone manufacturing space.

The local manufacturing of smartphones will also attract foreign investment and earn foreign exchange via exports. Pakistan is the seventh-largest importer of mobile phones with a market size of over 40 million. Therefore, local manufacturing will also save foreign exchange on mobile phone imports.

 

FuturePAF

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I hope it is actually a manufacturing plant and not just an assembly plant. Pakistan needs to have the factories to make at least some of the components, specifically batteries, as there are lithium mines in the region.
 

Azure

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I hope it is actually a manufacturing plant and not just an assembly plant. Pakistan needs to have the factories to make at least some of the components, specifically batteries, as there are lithium mines in the region.
IT WILL BE AN ASSEMBLY PLANT. IT DOESNOT MAKE FINANCIAL SENSE TO MAKE MANUFACTURING PLANT DIRECTLY. OVERTIME WE MAY SEE LOCALIZATION OF COMPONENTS.

ITS A PROCESS. THE EARLY WE START, BETTER IT WILL BE.
 

Bilal.

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I hope it is actually a manufacturing plant and not just an assembly plant. Pakistan needs to have the factories to make at least some of the components, specifically batteries, as there are lithium mines in the region.
Per the mobile phone manufacturing policy they have to reach 49% localization.
 
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raahaat7

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Should be a joint venture with a local partner.
Chinese companies to set up first smartphone manufacturing plant in Faisalabad




Two Chinese tech companies have reached an agreement at the Faisalabad Industrial Estate Development and Management Company (FIEDMC) office to set up a smartphone manufacturing plant in Faisalabad.

According to the details, the agreement was penned between Vice President VIVO Duam Tai Ping and Director Manufacturing Zhang Bin in the FIEDMC office. Provincial Minister for Industry and Commerce Mian Aslam Iqbal was also present while the agreement was finalized.

As per the agreement, Chinese companies will jointly set up the first smartphone manufacturing plant at M3 Industrial Estate, Faisalabad. Initially, Chinese companies will invest $10 million in the project. With the setup of the manufacturing plant, smartphones will be manufactured locally.

The Provincial minister welcomed the development, saying that local investors are turning towards Punjab due to the beneficial policies of the Punjab government. The provincial minister said that the investors will be provided facilities and complete protection on a priority basis.

This development will not only promote employment opportunities for the locals, but will also boost the local smartphone manufacturing space.

The local manufacturing of smartphones will also attract foreign investment and earn foreign exchange via exports. Pakistan is the seventh-largest importer of mobile phones with a market size of over 40 million. Therefore, local manufacturing will also save foreign exchange on mobile phone imports.

 

Basel

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I hope it is actually a manufacturing plant and not just an assembly plant. Pakistan needs to have the factories to make at least some of the components, specifically batteries, as there are lithium mines in the region.
Yeah! Currently Infinix and Techno are assembling Smartphones but we need true manufacturing in Pakistan.
 

Azure

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Duty collection on mobile device import doubles to Rs54bn
Mubarak Zeb Khan

The increase in revenue came after the government imposed a ban on use of non-duty paid or smuggled mobile phones in the country.

The increase in revenue came after the government imposed a ban on use of non-duty paid or smuggled mobile phones in the country.

ISLAMABAD: Pakistan Customs has collected Rs54 billion in the last year on import of mobile devices through Device Identification, Registration and Blocking System (DIRBs), which is 145 per cent higher over the preceding year.

The data released by the Federal Board of Revenue (FBR) showed that the increase in revenue from mobile phone import is due to the fact that now any non-duty paid/smuggled phone cannot be used in Pakistan without payment of due taxes and registration with the Pakistan Telecommunication Authority (PTA).

Pakistan Customs in collaboration with the PTA introduced the DIRBs to eliminate the usage of smuggled devices in the country. This successful intervention has attracted huge investment in the country, according to a customs official.

The official said that 17 companies are now manufacturing mobile phones in the country while adding that the TCL also plans to invest in Pakistan’s mobile manufacturing industry with Airlink whereas another company Alcatel is also exploring the possibility.

At the same time, due to the geographic proximity to China, which is a global hub for handsets manufacturing and is currently looking for investing outside the country due to increasing labour costs as well as trade tensions with the United States, presents a huge opportunity for the country.

Better use of information technology and enforcement through targeted operations against smugglers, the issue of availability of smuggled items has been addressed to a large extent which has provided space for local industry, he added.

Since July 1, 2019, the government has also withdrawn the facility of duty-free mobile handset under the baggage rules from abroad. The decision, according to the FBR, was taken following receipt of numerous complaints of the scheme’s misuse.

Official data showed that travellers brought as many as 1,389,707 mobile handsets in to the country during FY20 under baggage and registered it with DIRBs. As a result, the Pakistan customs raised more than Rs5.8bn in the last year from expatriates and travellers on import of mobile phones under baggage.

At the same time, there is a clear policy for mobile phones import commercially. Under the commercial imports, as many as 19.80m handsets were imported during the period FY20 at a total value of Rs209.316bn with the FBR collecting Rs39.414bn revenue on it.

In May, the government approved mobile phone manufacturing policy which to help nurture an indigenous handset industry that can be internationally competitive. There is a significant local demand due to increase in size of the market as well as sophistication in terms of migration towards 4G.

The related and support industries like packaging, plastics, and IT software etc already have a strong presence in the local market.

Under the policy, government will give three per cent allowance to local manufacturers for exports of mobile phones and locally-assembled sets will be exempted from 4pc withholding tax on domestic sales.

The government will maintain tariff differential between completely built unit imports and completely knocked down manufacturing till the expiry of the policy. In return, the domestic industry will have to ensure localisation of parts and components as per the road map included in the policy.

Amendments have been introduced in the Customs Act 1969 to award harsh punishment including forfeiture of property, godowns used for storage of smuggled goods, penalty and imprisonment up to 10 years.

 

Paul2

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After how much time of start of plant, 51% localization is to be achieved?
Cheapest imported components, expensive local materials.
Chinese companies to set up first smartphone manufacturing plant in Faisalabad




Two Chinese tech companies have reached an agreement at the Faisalabad Industrial Estate Development and Management Company (FIEDMC) office to set up a smartphone manufacturing plant in Faisalabad.

According to the details, the agreement was penned between Vice President VIVO Duam Tai Ping and Director Manufacturing Zhang Bin in the FIEDMC office. Provincial Minister for Industry and Commerce Mian Aslam Iqbal was also present while the agreement was finalized.

As per the agreement, Chinese companies will jointly set up the first smartphone manufacturing plant at M3 Industrial Estate, Faisalabad. Initially, Chinese companies will invest $10 million in the project. With the setup of the manufacturing plant, smartphones will be manufactured locally.

The Provincial minister welcomed the development, saying that local investors are turning towards Punjab due to the beneficial policies of the Punjab government. The provincial minister said that the investors will be provided facilities and complete protection on a priority basis.

This development will not only promote employment opportunities for the locals, but will also boost the local smartphone manufacturing space.

The local manufacturing of smartphones will also attract foreign investment and earn foreign exchange via exports. Pakistan is the seventh-largest importer of mobile phones with a market size of over 40 million. Therefore, local manufacturing will also save foreign exchange on mobile phone imports.

$10m is kind of a lot for just that, given that facility, and building price is local.

$2-$3m is all what's needed for a warehouse style factory (less land price,) 2 PCB lines, parts shop, assembly lines, and storage/logistics area.

Peers of mine setup 1-2 of such lines per year.
 
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kris

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Even with huge market india hasn't achieved any significant improvement in electronics and semiconductors.....
Will be even more difficult for smaller markets
 

Paul2

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Sorry it’s 49% in phased manner, over 5 years:
View attachment 691667
So, they want a display, and battery factory is 4 something years? Sounds quite ambitious. It's doable, but, honestly, I doubt they will do it in full.

Cheapest, and non-market-competitive LiCo line for making cells for internal use is around $120000, and as for any manufacturing line, you want at least two, but cells would be so bad by modern day standards, you will not loose much by keeping importing. Decent cells are at rock bottom prices already.

To have anything not 20 years old tech-wise, you will spend at least $2m on that alone.

Same for display plants. Anything less than $4-5m will only buy you a plant for prehistoric 1-2G LCDs, and this is at the time when LCD is on its last breath.
Even with huge market india hasn't achieved any significant improvement in electronics and semiconductors.....
Will be even more difficult for smaller markets
You have a huge bonus for business attractiveness in face of license Raj, and a prospect of Ambani Bhai putting an eye on your business.
 

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