Jan. 10, 2012 (China Knowledge) - Huawei Technologies Co Ltd, the world's second-largest telecom equipment maker, has decided not to build a factory in India due to the country's weak demand for telecom gear, said a top executive.
The executive added that the company has signed a contract with an Indian unit of Singapore-based Flextronics International Ltd to manufacture telecommunications equipment for local supplies.
Huawei Technologies currently owns a small facility in Chennai, India to produce fiber-optic equipment.
Analysts said the demand for telecom equipment in India is expected to increase from EUR 547.65 billion in 2010 to EUR 1.7 trillion in 2020.
In a statement, Huawei Technologies said it is launching a research and development center in Bangalore, India with an investment of US$150 million. The Chinese company has spent around US$400 million on such operations in India for the past ten years.
The Chinese telecom equipment maker claims it has introduced the world's thinnest smartphone, the Ascend P1, a super-thin, 4.3-inch handset, with operating system of Android 4.0, sources reported.