Samsung plans to expand production at its Noida factory to manufacture smartphone displays under India’s PLI scheme. The move aims to boost local manufacturing, work with Indian suppliers, and strengthen exports.
Noida: South Korean electronics brand Samsung is planning to expand its production in India. The move is to manufacture smartphone displays at Samsung’s factory in Noida, Uttar Pradesh. The company has applied to manufacture smartphone displays under the central government’s Production-Linked Incentive (PLI) scheme.
Reports suggest that Samsung is now awaiting government approval to manufacture displays in India. Samsung’s largest smartphone manufacturing unit globally is in Noida. This location has become a major hub for Samsung’s smartphone exports over the past few years. There are plans to manufacture smartphone displays at this factory. JB Park, President and CEO of Samsung, said that the company has also requested an extension under the smartphone PLI scheme. He mentioned that the company is in discussions with the government about the possibility of continuing benefits in the new phase of this scheme.
Production-Linked Incentive Scheme
Under this scheme, companies receive tax benefits and financial incentives for achieving the annual production targets set by the government. However, Samsung does not plan to shift production from Vietnam to India. Vietnam will continue to be the company’s largest international production base. If demand increases in India, the company may make further investments. Samsung also plans to source chipsets for smartphones from within the country. For this, these suppliers need to meet international standards of quality and price. JB Park said the company is keen to work with local partners wherever possible.
India has become a key market for Samsung’s international business. In the last financial year, the company’s revenue in the country exceeded $11 billion. About 42 percent of this revenue is from exports. Approximately 70 percent of the company’s revenue in India comes from smartphones. Reports suggest that Samsung plans to increase the share of non-smartphone categories in its revenue from the country to about 50 percent in the next decade.