Chinese telecom equipment firm Huawei Technologies has firmed up plans to invest US$2bn in India over the next five years.
A Huawei spokesman in Beijing, Du Pengyu, said the bulk of the investment will go towards expanding manufacturing operations in Chennai, South India, while an estimated $550-600m will be for R&D.
The immediate investment of $133m is for the construction of a new R&D campus in Bangalore, where the company already has its largest research centre outside China.
Construction work started at the eight-hectare site in April and is scheduled for completion in May 2013. The centre will be able to accommodate 4,000 engineers and other employees.
Du said most of the engineers would be hired in India. Huawei India started production of optical network transmission equipment in April. The future plan is to include the production of wireless network equipment.
Huawei’s revenue grew 24 per cent in 2010, to $28.5bn. Telecom network equipment accounted for two-thirds of that, with cellphones and tablet PCs contributing 15 per cent. The company has projected revenue to hit $100bn by 2020.