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Xinhua Silk Road Database
Economy

"Digital Factory" benefits thousands of households

October 18, 2023


Abstract : China has been working closely with Belt and Road countries and regions to build a 21st Century Digital Silk Road through scientific and technological innovation.

China has been working closely with Belt and Road countries and regions to build a 21st Century Digital Silk Road through scientific and technological innovation. Against the backdrop of increasing uncertainties and unpredictable factors, and the accelerated evolution of global changes of a magnitude unseen in a century, digital technology and the digital economy have become significant opportunities for a new round of the world's scientific and technological revolution and industrial transformation, and also the key driving force for stabilizing economic growth.

New digital factory promoting upgrading of mobile phone manufacturing in Bangladesh

To meet the huge market demand, in May 2023, a new ISMARTU factory of Transsion Holdings in Bangladesh was officially put into operation in the Meghna Industrial Economic Zone in Narayanganj in a suburb of Dhaka. The new factory, with a construction area of more than 22,000 square meters in the first phase, will provide over 2,000 jobs locally, boosting the local economy and supporting the cultivation of IT talent.

China is Bangladesh's first strategic partner, and Bangladesh is the first South Asian country to join the Belt and Road Initiative. According to International Data Corporation (IDC), in 2022, Transsion, a Chinese cell phone brand, ranked first in Bangladesh in terms of smartphone shipments, with a market share of 21.5%.

At the inauguration ceremony of the new factory, Mustafa Jabbar, Minister of Posts and Telecommunications of Bangladesh, delivered a speech via video, expressing his appreciation for the provision of affordable and high-quality smart terminals by Transsion for the Bangladeshi market. This initiative also contributed a Chinese solution to the "Smart Bangladesh" strategy released in 2022.

This photo shows the opening ceremony of the new ISMARTU factory of Transsion in Bangladesh, held in May 2023. (Provided by Transsion)

In September 2018, Transsion set up its first factory in Bangladesh, which is also the first local cell phone factory set up by a Chinese cell phone manufacturer in Bangladesh. The new ISMARTU factory has further improved the level of intelligence and production efficiency, realized the localized production of electronic circuit surface mounting, and strictly followed international quality and safety standards to better meet the needs of modern cell phone production and manufacturing.

In terms of hardware, the new factory has 12 cell phone production lines and related equipment, two Surface Mount Technology (SMT) production lines, and two accessory production lines and equipment. Meanwhile, the factory also provides professional reliability tests for cell phones and accessories to strictly control product quality. In terms of software, the factory adopts the Manufacturing Execution System (MES), which monitors the production site in real time. It can realize the transparency of the production site, optimize the production management and business of the factory's manufacturing process, and constitute an all-round application of information exchange, data sharing and operation automation among factories.

This photo shows a production line at the new ISMARTU factory of Transsion in Bangladesh. (Provided by Transsion)

Sajedur Rahman, an engineer in charge of a production line who just got promoted from assistant engineer to assistant team leader this year, said, "The factory is very large and provides many opportunities for me and other local managers to learn and upgrade our skills." He also detailed how the experts provided him with a wealth of technical assistance, explaining to him the basic requirements, operational standards and quality control standards of mobile device manufacturing.

"The new factory provides an international management platform for all local managers," he said. Now Rahman is trying his best to put together a strong technical team for the factory to help the company maintain international quality levels in the local market and ensure customer satisfaction.

"The working environment here (at the new factory) is very good," said employee Shirina Khatun, who has been working at Transsion's Bangladesh factory since 2018. "I have learned a lot working here, including what quality standards are and how to meet the quality standards in making the products."

Staffers work at the new ISMARTU factory of Transsion in Bangladesh. (Provided by Transsion)

Promoting the integration of local manufacturing into the global industry chain

In addition to Bangladesh, Transsion has also set up production and manufacturing centers in Ethiopia, India and Pakistan to introduce advanced production technologies, management systems and quality control standards of the cell phone industry into emerging market countries. It has provided talent training, cultivated industry talent, and promoted the overall development of the local cell phone manufacturing industry.

At present, the global sales network of Transsion covers more than 70 countries and regions, including Nigeria, Kenya, Tanzania, Ethiopia, Egypt, Pakistan, Bangladesh, Indonesia, the Philippines and other Belt and Road countries.

Data shows that Chinese electronic products, cell phones in particular, are popular in emerging markets. According to IDC's Worldwide Quarterly Mobile Phone Tracking Report, Transsion's share of the global cell phone market in 2022 was 11.7%, ranking third. The global market share of its smartphones was 6%, ranking sixth.

The production, R&D, purchasing and sales teams of Transsion have a large number of local employees, who play an important role in the company's production and operation. Currently, more than 90% of Transsion's overseas operations are run by local employees, and the company has created numerous job opportunities in the Belt and Road countries.

In Pakistan, the joint-venture factory set up by Transsion and TECNO, with an investment of 480 million Pakistani rupees (about 3 million U.S. dollars) in the first phase, has become a relatively large cell phone production and assembly company in the country, which can make up to 3 million cell phones annually and provide about 800 local jobs.

In Ethiopia, Transsion is an important foreign exchange earner. In addition to manufacturing and selling intelligent terminal products to meet the domestic demand, the company has a capacity big enough to export its products to neighboring markets in Africa.

This photo taken in December 2019 shows Transsion’s factory in Ethiopia. (Provided by Transsion)

Bridging the digital divide with localized innovation

Over the years, Transsion has always carried out product planning and technology research and development from the perspective of the needs of consumers in Belt and Road countries to explore the overseas market. With localized innovation as the core, Transsion has promoted science and technology innovation centered on consumers in emerging markets, bridged the digital divide through continuous technological innovation, and achieved breakthroughs in positioning itself accurately in the emerging markets and meeting diversified needs.

Transsion has established its own R&D centers in Shanghai, Shenzhen and Chongqing, and has carried out a large amount of innovative research in the fields of artificial intelligence voice recognition and visual perception, deep skin tone photo algorithm, intelligent charging and super power saving, cloud-based system software, intelligent data engine and other areas in line with the users' habits of use.

Take the African market as an example, as one of the earliest Chinese cell phone manufacturers to enter Africa, Transsion has a deep understanding of the African market and user groups. In response to the market demand of African consumers, the company has developed personalized application technologies such as dark-skinned camera technology, night-time photo capture technology, and face recognition unlock function in dark places for dark-skinned consumer groups in line with the local aesthetic fashion trends and the image debugging standards. Considering such problems as frequent power failures in some African countries, the drastic temperature changes from day to night and the high level of perspiration in the hands of the users, Transsion developed low-cost high-voltage fast-charging technology, ultra-long standby, current control technology for ambient temperature detection, and anti-sweat USB ports. In addition, to meet the entertainment demand of African consumers, the company also modified the bass design, developed speakers suitable for African music, and adjusted radio function to suit African users. Moreover, the company developed mobile internet applications in the fields of music, games, short videos and news aggregation, which are compatible with the preferences of local consumers.

Consumers in Africa use Transsion cell phones. (Provided by Transsion)

With the advancement of the Belt and Road Initiative, Africa has entered a new stage of digital transformation thanks to the improvement of its mobile communication infrastructure and the rapid popularization of smartphones. On the basis of strengthening its smart terminal products, Transsion has vigorously developed user-friendly mobile internet services in line with local culture. At the same time, the company has helped more and more African users connect with the world and brought convenience to their lives through the integration of its software and hardware businesses.

In the decade since the Belt and Road Initiative was put forward, technology and internet companies represented by Transsion are deepening their cooperation Belt and Road countries and sharing the dividends of the mobile internet era with the world. In the eyes of local consumers, "Made in China" is no longer a synonym for inexpensive and practical commodities, but an important medium that helps them embrace digital life. (By Wu Shuang)

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Keyword: China-Bangladesh cell phone digital economy BRF case

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