Huawei cancels planned India factory

Huawei cancels planned India factory

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Huawei Technologies has dropped a plan to set up a new manufacturing unit in India due to weakening demand from that market, The Wall Street Journal reported, quoting a top executive at the firm's Indian operations. The Chinese telecommunications maker instead plans to sign a contract with a unit of Singapore-based Flextronics International to manufacture equipment for the local market. Huawei has already established a small Indian unit to make fiber-optic equipment near Chennai, and the new factory was part of a plan to sidestep New Delhi's anti-dumping taxes and opposition to imported telecom gear. However, telecom companies in India have been holding back on orders in recent months, due to regulatory uncertainty, corruption allegations and competition. India's telecom regulator said last year that telecom companies should source 30% of their equipment locally by April; that proportion is due to rise to 80% by 2020. Huawei also said in an emailed statement that it is setting up a research and development campus in the southern city of Bangalore that will employ 4,000 software professionals.