Mobile-phone manufacturing company Xiaomi announced on Monday the signing of a memorandum of understanding (MoU) with its key components making firm "Holitech Technology," to start manufacturing key components in the country's southern state of Andhra Pradesh.

The MoU was signed in the state's Vijaywada district in the presence of state chief minister Chandrababu Naidu.

According to Xiaomi, Holitech Technology would invest nearly 200 million U.S. dollars in India over the next three years, and would be the first manufacturer in the country to make camera modules, thin film transistor (TFT), capacitive touch screen module (CTP), flexible printed circuits (FPC), and fingerprint sensor in India.

The manufacturing facility is likely to start by the first quarter of the next year, and expected to generate 6,000 jobs in the three years, added the spokesperson.

This is being described as Holitech's first major expansion outside China. The company currently has 16 factories in the Chinese mainland and China's Taiwan, the spokesperson said.

Holitech's component manufacturing plant would be featuring 75 acres of land in Tirupati city of Andhra Pradesh, and start mass production with nearly 50 million components per month.

The plant will also boast of nearly 50 percent "clean room", a contained space where provisions are made to reduce particulate contamination and control other environmental parameters such as temperature, humidity and pressure.

Andhra Pradesh government sources revealed that the state government has extended several incentives for the establishment of the manufacturing plants in terms of tax, land and power subsidy, among others.

Buoyed by the investment announcement, the state's information technology minister Nara Lokesh said that it was heartening to see Holitech Technology come to the state and initiate a big revolution in the market for local manufacturing.

Xiaomi's Global Vice President and Managing Director Manu Jain said that Xiaomi had witnessed a significant growth in the country over the past several years, and that the company's plans for India will set a new motion in place for the electronics manufacturing industry in India.

"Holitech is an important global component supplier of Xiaomi and with their entry in India, we are positive that a new era of local manufacturing will begin with several job creations and other component manufacturers are also coming in," Jain said.

Holitech CEO and co-founder Flame Chen said "The phenomenal growth of Xiaomi along with their initiatives to promote local manufacturing in India has encouraged us to explore component manufacturing for Xiaomi in India."