With smartphone manufacturers planning to diversify their production facility and supply chain, companies are now looking to shift some of the production to countries like India. Several Chinese smartphone companies, which are among the leading brands in the market, are already making most of the phones in India.
Now, it seems that some of the biggest names in the smartphone industry are also eyeing production in India. Recently Apple started manufacturing its high-end iPhone 11 for the first time in India and now its turn for Samsung.
As per the report coming from the Economic Times, the South Korean giant is planning to shift some portion of its smartphone production from Vietnam and some other countries to India. It adds that the company is planning to produce devices worth $40 billion in India.
Citing people aware of the development, the report claims that Samsung has already submitted estimates with the government for making smartphones worth over $40 billion in India for the next five years under PLI (Production Linked Incentive) scheme.
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It is also being reported that most of the phones manufactured in India with a factory price of over $200, which could account for over $25 billion, will be exported. Currently, Vietnam is the second-largest exporter of smartphones after China.
After closing down two smartphone factories in China in 2018, Samsung recently shut down its last smartphone production facility in China. The company’s smartphone ODM operations, which were halted because of the COVID-19 pandemic, have now been resumed and could account for around 10 percent of the company’s total smartphones.
A couple of months ago, Samsung announced a new factory, touted as the world’s largest mobile factory. It is located in Sector 81 in Noida and has a production capacity of 120 million mobile devices a month. This comes at a time when smartphone users in the country are about to touch the 340 million mark by the end of this year.
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