Local manufacturing with affordable technology will give the Make in India initiative a different gradient. With increasing digital inclusion and financial inclusion, the products are made affordable to the localities. Samsung's contemplation of ‘Make for India’ and ‘Make for the World’ will be boosted by the start of laptop production at its Noida plant later this year. This will become the second-largest base for the company since 1996; the Noida plant has been producing feature phones, mobile phones, wearables, and tablets. The upcoming addition of laptop production highlights Samsung's commitment to strengthening its manufacturing presence in India.
According to TM Roh, President and Head of Mobile Experience, Samsung Electronics, “The support received from state and central governments. The company, which recently introduced the Galaxy S24 series with a focus on AI, revealed its intention to produce the top-tier smartphone at its Noida manufacturing facility.”
Samsung’s Laptop Production
Roh spoke of the ongoing preparations for laptop production, highlighting the firm's commitment to assisting in the country's economic objectives. The Noida plant opened its doors in July 2018 and is widely regarded as the world's largest mobile manufacturing plant, has played a significant role in the company's capacity to produce mobile devices. The firm stated that the factory's expansion would see its annual mobile phone production jump from 68 million units to 120 million units, in line with the 'Make in India' initiative.
Samsung's plans to enter India were discussed by India Global Business. Samsung aimed to sell 20 million low and mid-range Galaxy M series handsets in India by the end of the year. This initiative also marks Samsung's renewed effort to sell its phones online through Samsung.com in India.
IT Display Production Unit from China to Noida
A massive boost for manufacturing in India has come from Samsung signing a deal that will see the relocation of their mobile, and IT display production unit from China to Noida in the state of Uttar Pradesh. The sum of Samsung's commitment to this venture amounts to $554.36 million. The Korean giant's decision gives a boost to Indian leader Narendra Modi's goal of making India a manufacturing powerhouse and promoting the mantra "Made in India, Made for the World." The state of Uttar Pradesh is no stranger to Samsung, as they manage one of the world's largest mobile manufacturing facilities there. According to the UP government's pledge to make investments easier for foreign companies in India, the South Korean phone giants received an exemption from a tax payable on the transfer of land for the factory, in line with their request for tax incentives.
"A key partner in India's manufacturing landscape, the company has consistently contributed to the program's success. The decision to introduce laptop manufacturing adds a fresh dimension to the firm's manufacturing portfolio in the country, showcasing its commitment to delivering a wide range of goods in the country."
The incentives offered to Samsung are covered by the Centre's Scheme for Promoting the Production of Electronic Components and Semiconductors. The initiative establishes Uttar Pradesh as a global center for manufacturing and enhances its standing as a destination for foreign direct investment.
Apple and Samsung, global market leaders in the mobile phone industry, have announced plans to establish additional manufacturing facilities in India to produce and export high-end smartphones costing upwards of $200 from India. They're aiming for five-year exports worth around $50 billion each.
The world's second-largest smartphone market was dominated by fierce competition from Chinese brands when Samsung opened its biggest mobile store in India. To beat their global rival, Apple Inc., they set up shop in a 33,000-square-foot store in the southern tech hub of Bengaluru. Then, they opened the world's largest smartphone manufacturing facility outside the Indian capital. Mohandeep Singh, senior vice president of mobile business at Samsung India, told the media that India is a crucial market. The firm intends to open additional retail outlets in a number of the country's most populous metropolitan areas. These stores will help us build up our share as we move forward.
The amended guidelines for the establishment of semiconductor fabrication facilities and display fabrication facilities in India shall provide fiscal assistance of 50 percent of the project's total cost on a pari-passu basis to those who are found to be eligible and possess the technological and financial capabilities to carry out such highly capitalistic and resource-intensive endeavors. The Government of India will collaborate with the State Governments to establish high-tech clusters with the necessary infrastructure in terms of land, semiconductor-grade water, high-quality power, logistics, and research ecosystem to approve applications for setting up at least two new semiconductor fabrication facilities and two new display fabrication facilities in the country.
Initiatives by the Government of India
The government has already established a timetable for the commercial introduction of the first indigenous chipsets by 2023-24 as part of the Digital India RISC-V initiative. Two microprocessors named Shakti (32-bit) and Vega (64-bit) have been engineered by IIT Madras and the Centre for Development of Advance Computing (CDAC).
The decision by global phone makers to invest in India will ensure that the domestic value enhancement in mobile phones will rise from 15-20 percent to 35-40 percent, enhancing India's status as a manufacturing center. These projects are now spread across six Indian states, namely Uttar Pradesh, Maharashtra, and the four southern states of Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka, where there are Foxconn and Wistron factories.
Global corporations are beginning to understand the Make in India blueprint proposed by Modi. During the pandemic, the intent was laid bare, but the ambition and scale of it are now evident. The potential of India as a global manufacturing center has been shown, and the gauntlet has been thrown down to its rivals through policy procedures, the reduction of bureaucracy, and positive interactions with business associations and multinational corporations that the country does mean business.
According to Ashwini Vaishnaw, India's aspirations to become a global leader in semiconductor manufacturing are likely to gain a significant boost in the upcoming months. A $10 billion initial government subsidy for the establishment of semiconductor manufacturing infrastructure, which includes a wafer fabrication unit, is expected to support the nation's first electronic chip production facility's launch within the next year.
“We're focusing on a specific area that could allow us to lead the way globally. Telecom and electric vehicles have emerged as a significant market for semiconductors. If we focus on developing and manufacturing chips used in these two segments, then we can become global leaders in these two segments. A total investment of $2.75 billion was invested in the semiconductor assembly plant in Gujarat by Micron last month,” says Vaishnaw.