Smartphone maker Nothing is spinning off its sub-brand CMF to operate as an independent Indian company, CEO Carl Pei announced on social media. The new entity will be majority Indian owned and headquartered in India, with Nothing retaining a stake and partnership role. The move aims to leverage India’s manufacturing boom and build local engineering capabilities in consumer electronics, Pei said, highlighting the country’s potential as a global export hub.
Pei explained that while 99% of smartphones sold in India are now manufactured locally, much of the product development and intellectual property remain overseas. Drawing from his experience in China, he noted that local brands investing in R&D helped create a stronger supplier ecosystem, turning manufacturers into engineering partners rather than just contract suppliers. He contrasted this with India’s smartphone market in 2015, when domestic brands held nearly half the market but lost ground to global players with superior engineering.
The spin-off of CMF is designed to address this gap by building engineering capabilities needed to transform India’s manufacturing base into globally competitive consumer electronics companies. Pei emphasized that India has the manufacturing infrastructure and a large market absorbing over 150 million smartphones annually, but lacks the brand strength to drive engineering demand. The move reflects a strategic effort to develop local product development and intellectual property within India’s smartphone sector.
Nothing’s decision to establish CMF as a standalone Indian company marks a significant step in strengthening domestic smartphone engineering and manufacturing. The company will continue to hold a stake in CMF and act as its partner, aiming to build a deeper supplier ecosystem and enhance India’s position in global consumer electronics exports.