Samsung Eyes India Tech, Manufacturing Hub Via PLI Scheme

• Samsung has applied for the PLI scheme for mobile screen components and seeks an extension under the smartphone PLI program
• Samsung may source chips from India but isn’t shifting production from Vietnam
• Samsung’s export-driven growth, supported by the PLI scheme, saw a 37% revenue increase in fiscal 2025

Samsung has applied for a production linked incentive scheme to manufacture mobile phone screens and is looking to extend its current approval to manufacture smartphones in India. Samsung wants to help build up India's position as the place to manufacture technology and also to develop a manufacturing centre for the Southeast Asian Region.

According to JB Park, President & CEO of Samsung's Southwest Asia Region, Samsung has a desire to procure chips from India as long as they are competitively priced, which would align with India's ambitions to participate significantly in the global supply chain of semiconductors. However, Samsung is not looking to shift some of its production capabilities from Vietnam to India but may consider expanding other plants that exist in India when demand naturally grows.

“From Vietnam, no. If it is already invested, why should we (shift capacity from there to India)? If you have to build more capacity, then yes, investing in it in Noida is an obvious choice”, stated Park.

Apple Inc., which is a competitor of Samsung Electronics, is focusing their attention and efforts into manufacturing in India, thus moving some of their production operations away from China due to geopolitical problems and United States pressure.

Although Samsung Electronics has most of their manufacturing located in Vietnam (a country that has not been impacted by many of the current U.S.-China tensions), they are facing stiff competition from Apple Inc., especially within the premium smartphone category. Park stated that while the youth demographics of today are starting to embrace the iPhone brand, this trend will eventually level off in the future.

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“I know as we look at just the past three years there has been an increase in iOS users, but I look more at a holistic market and consumer lifestyle. I'm not that concerned about it”, Park added.

Even with all of these new competitors entering India, Samsung Electronics still holds a dominant position within India's Android market (which makes up roughly 90% of all smartphone users in India).

Park stated that thanks to the PLI (Production Linked Incentive) program that Samsung has implemented, they expect that exports will account for 42% of their total revenue for the fiscal year ending in March 2025, which is estimated to be approximately 1,00,000 crores of Rupees (37% year on year growth).

Furthermore, Samsung Electronics is currently working with the government of India to obtain approval for the expansion of their smartphone display assembly operation in the Noida region. In the past year, Samsung has been developing a brownfield project that was started in the year 2021, with hopes of expanding their local sourcing of parts and materials to produce smartphones within the Indian market.

Park noted, “This supply ecosystem will expand year by year if the requirements or the technology where the quality of the vendor meets Samsung's standards. We always look for a local partner and extension”.