Samsung India: South Korean tech giant Samsung is taking steps towards developing India as its major technology and manufacturing base. The company has applied under the Production Linked Incentive (PLI) Scheme for the manufacturing of components like mobile phone displays. Along with this, Samsung has also demanded to extend the approval given in the smartphone PLI program so that its manufacturing focus in India can be further strengthened.
Open stance regarding chip sourcing from India
According to The Economic Times report, JB Park, President and CEO of Samsung’s Southwest Asia region, says that the company is also ready to purchase semiconductor chips from India if the prices remain competitive. This may give India an opportunity to play an important role in the global semiconductor supply chain. However, Samsung currently has no intention of shifting manufacturing capacity from countries like Vietnam to India.
Focus will be on Noida factory
Samsung’s largest factory in India is located in Noida. The company says that if additional production capacity is needed in future, it will be expanded in India only. According to JB Park, there is no point in removing capacity from areas where investment has already been made. But for new needs, investing in Noida is a natural option.
Tough competition from Apple
Samsung is facing tough competition from Apple in the premium smartphone segment in India. Apple has shifted some manufacturing capacity from China to India due to geo-political reasons and American pressure. Samsung’s main manufacturing base is Vietnam, which is not considered a sensitive country like China for America. JB Park admitted that the popularity of iPhone has increased among the youth but he believes that this trend may stabilize after some time.
Samsung’s strong hold in the Android market
Samsung is confident that its position in the Android smartphone market in India still remains strong. According to the company, about 90 percent of smartphone users in India are on Android platform and Samsung has a strong hold in this segment. For this reason the company is not worried much in the long term.
Exports and revenue increased due to PLI scheme
Samsung has attributed its export-led growth in India to the government’s PLI scheme. In the financial year 2025, about 42 percent of the company’s total income from India will come from exports. During this period, Samsung’s revenue increased by 37 percent compared to last year to more than Rs 1 lakh crore. The company’s flagship smartphones are also included in the products sent from India.
Expectations related to PLI 2.0
The smartphone PLI scheme expired in March, in which Samsung received incentives for four out of five years. Due to Covid, the company could not get its benefits for one year. Samsung is now waiting for approval from the government to expand this scheme and is also in talks with officials regarding PLI 2.0.
Emphasis on local manufacturing and supply chain
Samsung is also working on plans to expand smartphone display assembly at the Noida plant, which started as a brownfield project in 2021. The company is also ready to buy more and more components from Indian vendors so that local value addition can be increased. Samsung believes that India’s supply ecosystem will become stronger every year as technology and quality standards advance.
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