Sony Ericsson will establish a R&D unit for mobile phones in Chennai, India. The new facility will become part of Sony Ericsson’s global network of R&D units which currently comprises sites in China, Japan, Sweden, the Netherlands, the US and the UK.

The move follows closely on the company’s January announcement of sourcing local manufacture of phones in Chennai with EMS partners Flextronics and Foxconn; with a production target of 10 million units by 2009. The announcement is part of Sony Ericsson’s global strategy to strengthen its capabilities within the world’s fastest growing telecommunications market and generate the growth required to reach a top three position in the global handset market.

“Establishing a development facility in India along with manufacturing gives us a strong foothold for generating future growth in India. Over the past few years, Sony Ericsson has witnessed very encouraging growth in the Indian market, more than doubling its market share, and becoming amongst the top 3 GSM handset manufacturers. With a product development site in Chennai, as well as local manufacturing, Sony Ericsson is poised to further consolidate its growing momentum in the Indian market,” said Sudhin Mathur, General Manager – Sony Ericsson India.

According to internal data, in India the mobile phone market doubled last year and more than 62 million handsets have been sold in the last twelve months. Projections are for market growth to continue at a similar pace. There are now more than 20 Sony Ericsson phone models available in India, and Sony Ericsson expects that its investment in the region will further increase the popularity of its products.