Samsung, which once dominated the Indian smartphone market and is currently the second largest smartphone vendor in India, is now setting up a new manufacturing plant in India to produce displays.
The South Korean company will be investing $500 million to setup a manufacturing unit for producing displays in India at the outskirts of New Delhi. This was disclosed through the company’s filing with the local regulator. Samsung already has the world’s largest smartphone manufacturing plant in India.
The new manufacturing plant in India would produce displays for smartphones but will later expand to include wide-range of other electronics devices. The company has already allocated some land area from its existing plant in Noida.
As per the report, Samsung India has incorporated a group entity named Samsung Display Noida “with the principal business of manufacturing, assembling, processing and sales of displays for all types and sizes of electronic devices.”
This new plant will help Samsung boost its production capacity for smartphone components and access a range of tax benefits. The development comes at a time when the Indian government wants to impose duties on imported displays for both smartphones and televisions. At the same time, the government is also looking at introducing a slew of benefits in the coming budget for foreign component manufacturers.
In 2018, Samsung opened what was touted as the world’s largest mobile manufacturing plant in Noida, with commitment to spend $700 million for the factory.
Samsung has lost ground to Chinese smartphone makers Xiaomi and Realme. In efforts to reclaim market share in India, the company has revamped its smartphone lineup and is actively launching new devices in the market at various price points.