Samsung plans to transfer a large portion of its smartphone production from Vietnam and other countries to India.
The South Korean giant has over the past few years increased the production of smartphones in India.
Samsung has its largest smartphone factory in Noida, India, which will remain a leading production center in the future.
And according to To report New from The Economic Times, Samsung plans to manufacture $ 40 billion worth of smartphones in India.
A person familiar with the company’s plans told the newspaper that Samsung will diversify its product lines to manufacture smartphones in the country as part of the Indian government’s production-related incentives (PLI) scheme.
The Indian government’s Production Related Incentive Scheme (PLI) aims to attract global manufacturers to India and push them away from countries such as China and Vietnam.
Government officials said: Samsung’s move helps fill a major gap in India’s efforts to find ways to avoid cheap imports from the Association of Southeast Asian Nations (ASEAN) to India, due to the free trade agreement the country entered into with the trading bloc.
It is said: This plan has an impact on the current smartphone production in Vietnam and other countries.
Vietnam is another center in Samsung’s production efforts, and it is currently the second source of smartphones after China, as last year Samsung shut down its last factory in China.
Of the $ 40 billion of smartphones that Samsung plans to manufacture in India over the next five years, devices with a manufacturing price of $ 200 could represent more than $ 25 billion.
A senior government official said: Most of the smartphones produced in the $ 200 category will be exported to other markets from India.
The company is reportedly ending cell phone production in South Korea due to rising labor costs.
According to industry estimates, Samsung makes about 50 percent of its smartphones in Vietnam, and the company also manufactures smartphones in Brazil and Indonesia.
The South Korean company also makes TVs in India for the domestic market, and has plans to start a smartphone screen factory in the country.
Separately, Apple, Samsung’s main competitor, has increased iPhone production in India.
Apple first started producing low-cost old smartphones in the country, but it recently started making devices, such as (iPhone XR) and (iPhone 11), in India.
The size of the global smartphone export market is about $ 270 billion, and Apple owns a market share of 38 percent and 22 percent for Samsung in terms of value, while in terms of quantity, Samsung owns 20 percent and Apple 14 percent.