Samsung expands India tech and manufacturing hub under PLI scheme, eyes local chip sourcing

Economic Times
Economic Times
3h ago
4 views
Samsung is growing its India smartphone and component manufacturing under the PLI scheme, boosting local sourcing and exports while maintaining capacities in Vietnam.
Samsung expands India tech and manufacturing hub under PLI scheme, eyes local chip sourcing
A What happened
Samsung intends to strengthen its presence in India by participating in the production-linked incentive scheme for components and seeking extension under the smartphone manufacturing program. The company is open to sourcing chips domestically in India if the price is competitive, supporting India's efforts to become a semiconductor supply chain stakeholder. Samsung will not move existing capacities from Vietnam but may expand capacity in India organically. The Noida facility is central to its India operations. Samsung's exports from India reached 42% of fiscal 2025 revenue, reflecting a strategic shift towards India driven by government incentives and growing domestic manufacturing capabilities.

Key insights

  • 1

    India as a growing semiconductor and manufacturing hub: Samsung's openness to sourcing chips domestically signals India's emerging role in the global semiconductor supply chain, reflecting government efforts to localize electronics manufacturing.

  • 2

    Strategic capacity growth without displacing existing operations: Samsung prefers organic expansion in India rather than shifting existing production from Vietnam, showing a cautious yet committed approach to build India as a complementary manufacturing center.

  • 3

    Export-led manufacturing growth driven by PLI incentives: The significant share of exports from India in Samsung’s revenue underscores the effectiveness of the PLI scheme in transforming India into an export-oriented manufacturing base for global technology companies.

Takeaways

Samsung's plans to expand its manufacturing and component production in India align with government incentives and broader trends of diversifying supply chains. This reinforces India’s strategic importance in global technology manufacturing over the coming years.

Topics

World & Politics Policy & Regulation

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