Chinese smartphone maker Xiaomi, has joined hands with a Taiwanese electronics contract manufacturing giant, Foxconn Technology Group.

The two companies have aimed to set up Xiaomi’s second manufacturing unit in India at Sri City in Andhra Pradesh.

Financial and the capacity details of the second unit, are yet to be disclosed.

Xiaomi India, Vice President and Managing Director, Manu Jain said, “The company is still not able to meet the demands of the customers, despite, the first plant running at 100% capacity.”

“The first plant, till now has provided employment for more than 5000 people, from in and around 100 nearby villages, and majority of the workforce employed are women”, added Mr.Jain.

The second manufacturing unit, will be owned and operated by Foxconn, to produce phones exclusively for Xiaomi.  

The Chinese firm entered India in July 2014 and its first manufacturing plant went live in August 2015 and by March 2016, over 75% of its phones were being manufactured in India.

Xiaomi, has also claimed to have a combined production capacity of one phone per second during operational hours.

Xiaomi has so far raised USD 1.45 billion from Ratan Tata, Qualcomm Ventures, Qualcomm, IDG Capital Partners, Temasek, DST Global, TrueBridge Capital Partners, Yunfeng Capital, Morningside Group, GIC, Qiming Venture Partners, All stars investment and Morningside venture Capital.

Apart from the second manufacturing unit, the Chinese company has also launched a new Redmi 4A smartphone, powered by Qualcomm Snapdragon 425 processor, in New Delhi.

Customers can buy the new smartphone from 23 March, onwards exclusively on Mi.com and Amazon.