Samsung has set the ball rolling on setting up a manufacturing facility in India for producing smartphone displays. The company said the plant that is coming up in Noida would start commercial production from 2021 itself.
As reported by Reuters, the plant will initially be producing displays for smartphones though the facility can be scaled up to produce displays for other electronic devices such as laptops and TVs as well. The plan will come up with an initial investment of Rs 3,500 crore and is expected to provide employment to about 1300 youths.
The plant will also be enhanced in scope once demand picks up and more investment made available as deemed fit. Samsung is also open to meeting the display requirements of other companies as well, as it does from its other display manufacturing units elsewhere in the world.
Meanwhile, this would mark the first smartphone display manufacturing unit in India. The plant is coming up after Samsung opted to relocate its operations in China. The South Korean conglomerate already operates a smartphone manufacturing unit in Uttar Pradesh, which also happens to be the largest such facility in the world.
The new investment can also be considered a fallout of the Covid 19 pandemic, which has led companies worldwide to shift their plants away from China. This forms part of a global drive to break the current global supply chain network that right now is almost entirely dependent on China.
Setting up an alternate supply chain that is more diverse and isn’t localized on a single region or country is a huge challenge for the top companies who had initially set up shop in China. Countries like India, Vietnam, Thailand, and so on are vying for a slice of the huge investments that might come their way from companies fleeing China.
No wonder, there are lucrative sops and other incentives that are being doled out by the competing countries to attract investment. For instance, there already are efforts underway to ensure Samsung’s latest investment too qualifies for such tax sops to lure in more companies to invest in India.