Samsung Display has begun manufacturing smartphone display panels in India
According to the Economic Times, Samsung Display has begun manufacturing smartphone display panels in India. The company, which is a subsidiary of Samsung Display, already manufactures more than 70% of the displays used in TVs, mobile phones, and tablets in Asian countries such as China, Vietnam, and South Korea. According to people familiar with the matter, the South Korean conglomerate will begin producing smartphone display panels at a facility in Noida, Uttar Pradesh, in April 2021. This move is expected to directly employ 500 people and indirectly employ approximately 1,300 people.
This comes months after reports that India offered financial incentives to Samsung in exchange for the establishment of a Display factory in Noida, Uttar Pradesh. The Indian government has taken numerous steps to ensure that India remains a global manufacturing powerhouse.
The South Asian country recently approved a $1.02 billion incentive to boost domestic manufacturing, and reports suggest that it is also considering hiring chipmakers to start local production. In any case, Samsung Display has invested approximately 4,825 crores INR (approximately $653 million) in the relocation of mobile and IT display production units from China to India. Samsung will receive approximately 250 crores INR from the state government of Uttar Pradesh as financial provisioning for this project over a five-year period, as well as approximately 460 crores INR from the Centre’s Scheme for Promotion of Manufacturing Electronic Components and Semiconductors.
In terms of production, Samsung is expected to expand its display manufacturing to other peripherals such as monitors and other IT products in the future. This is a positive step toward increasing local production, the Make in India initiative, and benefiting from the PLI scheme. The company is said to be the only one of the 15 approved handset makers to have met the PLI scheme’s 2020-2021 targets. Apparently, the goal was to produce mobile phones with an invoice value of INR 15,000 (approximately $200).