ISLAMABAD – CMF is set to become an independent Indian company, with Indian shareholders holding a majority stake, Nothing CEO Carl Pei has confirmed.
The budget-focused consumer electronics brand will be headquartered in India and operate with its own team and research and development operations. Nothing will remain a shareholder and partner after the separation.
The announcement expands on Nothing’s earlier plans to separate CMF from its main business and establish India as a major base for the brand.
CMF Independent Indian Company To Have Local R&D
Under the new structure, CMF will take greater responsibility for product development and engineering.
Pei said the company will have its own engineering and R&D capabilities in India. Nothing will continue providing support through its engineering expertise, Nothing OS, supplier relationships and experience in building a global consumer electronics brand.
This means CMF will have greater control over how its products are designed and developed.
The areas expected to receive greater in-house attention include smartphone structures and materials, thermal management, durability, camera hardware and software, operating systems, software updates and antenna development.
CMF will also work more directly with suppliers on displays, chipsets and camera components.
Nothing Will Remain A CMF Shareholder
Although CMF will become a separate company, Nothing will not completely exit the business.
Pei confirmed that Nothing will retain a stake and continue as a partner.
The exact identities of the Indian shareholders and the precise ownership structure have not been disclosed.
The move therefore separates CMF’s corporate structure from Nothing while keeping a connection between the two companies.
CMF’s India Strategy Started Earlier
The latest announcement follows plans revealed by Nothing in September 2025.
At the time, the company announced a joint venture with Optiemus Infracom to manufacture Nothing and CMF products in India. Nothing said it planned to invest more than $100 million in the venture, with the project expected to create around 1,800 jobs over three years.
CMF was subsequently established as a separate Indian company, CMF India Private Limited, in December 2025, according to reports.
The latest development goes further by confirming that Indian shareholders will hold the majority ownership.
India Is Already CMF’s Biggest Market
India has become a particularly important market for CMF since the brand launched in 2023.
CMF was created as Nothing’s more affordable consumer electronics brand, with smartphones positioned below Nothing’s main phone lineup.
Pei has argued that India now has the manufacturing capacity, consumer market and engineering talent required to develop a global electronics brand.
According to figures cited in reports on his announcement, around 99% of smartphones sold in India are now manufactured locally. Pei’s argument is that the next stage is to build more engineering, intellectual property and R&D capabilities within the country.
CMF Targets 100 Million Phones A Year
CMF has set an ambitious long-term target of selling 100 million smartphones annually.
Pei said reaching that scale could give CMF greater influence over its supply chain.
A larger production volume could also encourage component suppliers to develop products specifically for CMF rather than simply offering components already available on the market.
The target would place significant emphasis on CMF’s ability to develop products that can compete beyond India.
CMF Wants More Control Over Smartphone Engineering
A major part of the CMF independent Indian company strategy is greater control over smartphone engineering.
Pei argued that companies relying heavily on manufacturing partners for product decisions can end up selecting from existing designs and components.
CMF intends to take more responsibility for the complete product development process.
That includes decisions involving materials, internal structure, thermal performance, cameras, software and connectivity.
The approach would give CMF greater control over the technology and design behind its devices.
No New CMF Phone Planned For 2026
The corporate restructuring comes as CMF has paused plans for a new smartphone this year.
Nothing co-founder Akis Evangelidis confirmed in June that CMF would not launch a successor to the CMF Phone 2 Pro in 2026.
He attributed the decision to rising memory costs, saying the company could not deliver a meaningful upgrade while keeping the device within CMF’s affordable pricing strategy.
The company has said it will continue launching products in other categories.
CMF’s current portfolio includes smartphones, headphones, earbuds and smartwatches.
What CMF’s Separation Means
The creation of an independent Indian company marks a significant change in CMF’s relationship with Nothing.
CMF will gain greater control over its team, engineering and R&D operations while maintaining a relationship with its former parent company.
For India, the move also reflects a broader shift from simply manufacturing smartphones locally towards developing products and technology within the country.
The exact ownership structure, leadership arrangements and timeline for the completed transition have yet to be disclosed.
For now, CMF remains closely connected to Nothing, but its new structure is designed to give the brand a more independent identity and greater control over its future product development.
Key Points :
- CMF will become an independent Indian company.
- Indian shareholders will hold the majority stake.
- Nothing will remain a shareholder and partner.
- CMF will have its own team and R&D operations in India.
- The company plans to take greater control of smartphone engineering.
- Nothing will continue contributing engineering expertise, Nothing OS and supplier relationships.
- CMF has a long-term target of 100 million smartphones annually.
- Nothing previously announced a more than $100 million manufacturing joint venture with Optiemus.
- CMF will not launch a new smartphone in 2026 because of rising memory costs.
- The exact identities of CMF’s Indian shareholders have not been disclosed.
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