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Samsung plans deeper manufacturing expansion in India with focus on components and exports

Samsung is stepping up efforts to expand its manufacturing presence in India by investing in local production, exports, and component manufacturing. The company has applied under the production linked incentive scheme for components to manufacture mobile phone displays in India, according to a report.

In addition, Samsung has approached the government seeking more time under the smartphone PLI programme, which has recently concluded. JB Park, President and Chief Executive Officer of Samsung Southwest Asia, said the company wants to position India as a major technology and manufacturing hub. He added that discussions are underway with the government on a possible continuation of incentives under a new phase of the PLI scheme.

Samsung has clarified that it does not plan to shift existing manufacturing capacity from countries such as Vietnam to India. Vietnam will continue to remain the company’s primary global manufacturing base. However, Park said India offers significant growth potential if demand increases naturally.

He noted that relocating existing capacity does not make business sense. If new capacity is required in the future, expanding operations at the Noida facility would be the preferred option, according to the report.

Samsung is also open to sourcing semiconductor chips from India, provided they are competitively priced and meet quality standards. This could support India’s goal of becoming a stronger player in the global semiconductor supply chain. Park said the company prefers working with local partners and plans to gradually expand its supplier base in India as technology capability and quality improve.

The company faces strong competition in India’s premium smartphone market, particularly from Apple, which has increased its manufacturing presence in the country amid geopolitical concerns around China. The report quoted Park as saying that while iPhones have gained popularity among younger consumers in recent years, Samsung is not overly concerned as user preferences tend to shift over time.

He pointed out that Android devices continue to dominate India’s smartphone market, accounting for nearly 90 percent of users, where Samsung maintains a strong position.

Samsung also credited the PLI scheme for supporting export growth from India. In the financial year 2025, exports accounted for 42 percent of Samsung’s India revenue. The company’s India revenue grew 37 percent year on year to cross Rs 1 trillion.

Samsung exports a wide range of products from India, including flagship smartphones. Park said the export momentum is steady and sustainable, provided policy support continues. The company is awaiting government approval to expand smartphone display assembly at its Noida plant. The project is a brownfield expansion that began in 2021. Samsung is also working to increase sourcing from Indian suppliers to raise local value addition over time.

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