Samsung Electronics Co, on Monday, announced that it is considering building a factory in India to produce flat-screens under the Samsung Display subsidiary. The company is planning to invest $500million as it is attempting to expand smartphone production in the country.
According to a company filing, Samsung Electronics will provide a ₹3,500crore loan and transfer a parcel of land in Noida worth ₹92crores to its display unit. The new display factory will also help in creating jobs in India where massive job losses have become a concern for the government.
The new factory will help the company in securing local supplies of one of the most expensive smartphone components. The company is the second-biggest smartphone provider in India after Xiaomi. The company is also facing tough competition from other Chinese phone makers like Vivo and Realme, who recently boosted its market share.
The Narendra Modi led government’s Make In India initiative is also considering a plan to offer subsidized loans to mobile handset manufacturers in an attempt to transform the country into a manufacturing hub. The initiative also includes setting up of industrial zones equipped with taxation and customs clearance.
Samsung already has smartphones making factory in Noida on the outskirts of the capital New Delhi since 2018. The largest assembler of Apple handsets, Foxconn Technology Group has already started producing iPhones in India and has set up two factories in Southern-India. Adding more production in India would also help companies diversify from China. The ongoing trade war between the US and China can certainly help the Indian government in boosting its Make In India initiative.
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