Samsung Expands Smartphone Display Manufacturing in India Under PLI Scheme
Samsung is set to significantly increase its smartphone display panel assembly operations in India, with plans focused on its major manufacturing facility in Noida. This expansion comes as the company seeks to leverage India's production-linked incentive (PLI) scheme, which offers tax breaks and benefits for meeting specific production targets. The move represents a strategic effort to strengthen Samsung's manufacturing footprint in one of its key global hubs.
Manufacturing Expansion and PLI Scheme
The expansion centers on Samsung's application for the PLI scheme to manufacture components for mobile phone displays. The company has also requested an extension for existing tax breaks related to smartphone manufacturing in the country. Reports indicate that Samsung is awaiting government approval to ramp up display assembly at its Noida plant, where it began assembling display panels in 2021 after shifting some operations from China.
Samsung's president and CEO for Southwest Asia confirmed the company's commitment to building manufacturing capabilities in India to meet new demand, though operations in Vietnam will remain unchanged. This balanced approach allows Samsung to diversify its production while maintaining established supply chains.
Market Position and Revenue Growth
Despite facing increased competition in the high-end smartphone segment, Samsung maintains a strong position in India's market, where Android devices capture over 90% of smartphone sales. The company's revenue from India exceeded $11 billion recently, with 42% coming from exports of phones and devices manufactured locally. This makes Samsung the first consumer electronics company in India to achieve such scale, with smartphones accounting for approximately 70% of its revenue in the country.
Looking ahead, Samsung anticipates that half of its Indian revenue will come from non-smartphone products within the next decade. This projection aligns with efforts to attract premium consumers through AI-equipped devices, including bespoke home appliances, Galaxy AI phones, and Vision AI series TVs and smart monitors.
Strategic Outlook and Sourcing
Samsung's expansion in India is part of a broader strategy to capitalize on the country's growing economy, which is expected to become comparable to major markets like China, Europe, and the United States as it approaches the $5 trillion mark. The company has expressed openness to sourcing semiconductor chips from Indian vendors, provided they offer competitive quality and pricing relative to global suppliers.
This focus on local manufacturing and potential sourcing underscores Samsung's long-term commitment to India as both a production base and a key consumer market. By enhancing display manufacturing capabilities, Samsung aims to bolster its supply chain resilience and support its product portfolio across multiple categories.
Conclusion
Samsung's planned expansion of smartphone display manufacturing in India reflects a strategic alignment with government incentives and market opportunities. The move not only strengthens the company's manufacturing ecosystem but also supports its export goals and diversification into non-smartphone revenue streams. As India's economy grows, Samsung's increased investment in display technology positions it to better serve both domestic and global demand while navigating a competitive landscape.