Samsung Electronics is well known for its consumer grade products ranging from home appliances to smartphones. However, the company is also a world leader as a supplier in memory chips and even the top manufacturer of AMOLED displays in the world. Now, the company is planning on further expanding its latter department by investing $500 million to set up a display manufacturing plant in India.
The South Korean tech giant will set up the new plant on the outskirts of New Delhi, the capital of India. This arrives after Samsung officially disclosed the sizeable investment and plans in a filing with Indian regulatory bodies. The plant’s primary focus is to produce displays that will be fitted in a wide range of devices including smartphones, and other IoT gadgets.
According to the filing, Samsung is setting up a display manufacturing plant in Noida by allocating some of the lands for its existing plant. This plant was claimed to be the world’s largest smartphone manufacturing plant and was opened in 2018 with a $700 million investment. With the new plant, Samsung will be even less reliant on importing its own technologies from other countries and can source its own components locally, bypassing tariffs and customs duties.
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The new display manufacturing plant also boosts the production capacity which will largely benefit from the Indian Government’s tax benefits and subsidies on manufacturing locally. India is currently the world’s second largest smartphone market which the Government recognizes and thus provides incentives to OEMs to set up their manufacturing and assembly plants locally.
Notably, Samsung is the second most popular brand in the Southeast Asian country. However, it is expected to be overtaken by Chinese brand Realme in the fourth quarter of 2019, according to analysts. Thus, the move might help Samsung price its Galaxy offerings more aggressively in the near future to stay more relevant in the current smartphone trends as Chinese tech giants like Xiaomi are becoming increasingly more popular in the nation.
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