China TechFaith Wireless Technology has said that TechFaith will invest $70m to establish a wholly owned subsidiary for the development of a 10 million-unit capacity smartphone production line in Beijing Economic and Technological Development Area.
The company said that this subsidiary will focus primarily on the production of QIGI’s smartphones as well as supporting TechFaith’s ODP business.
TechFaith partnered with Beijing E-town International Investment and Development, a PRC stated-owned investment and financing company headquartered in the Beijing Economic and Technological Development Area, in this project.
TechFaith chairman and CEO Defu Dong said that this new capacity will give the company a growth platform to meet the expected demand growth due to the fast increase in smartphone users worldwide.
"Given the extensive opportunities, we also plan to launch the QIGI brand and products in Russia and South East Asia due to their close geographic proximity with China," Dong said.
"In addition, the new production capabilities will be able to support the stable growth of our ODP business."
TechFaith expects the construction and full ramp-up of the production facility to be completed over the next five years.
