Samsung has announced it is setting up a display manufacturing unit in India. For this, the company would be investing about $500 million which will be on top of the $700 million that it has already ploughed in its India operations.
The new display manufacturing facility will be coming up at Samsung’s Noida facility on the outskirts of Delhi. The Noida unit is tasked with the manufacturing of mobile handsets. Samsung had earlier stated its factory in Noida is the world’s largest smartphone manufacturing facility and had started operations in 2018.
Samsung said its new plant would be manufacturing displays which will go in the making of smartphones as well as a host of other electronic devices. That might include tablet devices as well as TVs though the company hasn’t confirmed on any of this at the moment.
Having its display manufacturing facility within the same plant where it is already manufacturing smartphones is only going to make its venture all the cost-effective. That should lower manufacturing costs of the smartphones though it could be too early to predict if that is going to have any bearing on the price of Samsung mobiles in the country.
As it is, the South Korean giant is already reeling under intense competition from Chinese manufacturers such as Xiaomi. In fact. Samsung has already lost the mantle of being the largest smartphone player in India. That crown now belongs to Xiaomi with Samsung relegated to the second spot.
Now with Samsung getting into manufacturing more of its smartphone components locally in India, the company will be able to produce smartphones cost-effectively. Several tax sops provided by the local New Delhi administration will further add to the benefits.
Xiaomi managed to unsettle Samsung from the top spot in India largely by playing the price card as it offered similarly specced smartphones as those from Samsung but at lower costs. Now with Samsung has set up its own Smartphone and component manufacturing facility in India, it remains to be seen how the South Korean company can claw back to reclaim lost ground.
After all, the stakes are high considering that India happens to be the second-largest smartphone market in the world where about 500 million of the billion+ population using a smartphone. That also leaves a huge scope for growth too.