(Yicai Global) April 23 -- Wingtech Technology, a leading Chinese original design manufacturer that counts Xiaomi as its client, will expand its production in India and Indonesia to make handsets to the increasingly populated markets.

Wingtech plans to set up factories in both of the Asian countries, the Shanghai-based firm said in a statement, adding that the Indian one will have a monthly capacity of 3 million handsets, and the Indonesian factory will make 500,000 units each month. 

India has a population of 1.3 billion and Indonesia has 260 million residents so the potential demand for smartphones is very high, the statement added.

The firm will increase the registered capital of its Indian unit called Wingtech Mobile Communications to around CNY135 million (USD20.1 million) to facilitate the project in India. In Indonesia, Wingtech will order its Hong Kong unit to set up a joint venture with a local partner to oversee the construction. The registered capital of this JV will be around CNY24.4 million (USD3.6 million), and the Chinese partner will hold 60 percent of the equity.

Wingtech is also stepping up efforts to compete in the nascent fifth-generation wireless network market. It was the first ODM in the world to pen a deal with Qualcomm regarding a production license of Snapdragon X55 5G baseband chip, the second generation of the X50 5G baseband chip, the Chinese firm's executives have said earlier. These 5G mobile phone products are expected to be launched this year, they added.

Wingtech is one of major Chinese ODMs with its 90 million shipments in 2018. Its clients include China's Oppo Electronics, as well as the Indian brands of Micromax Informatics and Lava International. 

Editor: Emmi Laine