South Korean flat-screen maker, Samsung Display plans to set up a new factory in India with an investment of $500 million, as parent Samsung Electronics Co Ltd seeks to expand Smartphone production, a regulatory filing says.
This move would be a benefit for India, which is competing with near rivals to attract global smartphone firms under the government’s “Make in India” drive.
Under the plan, the Samsung Electronics will provide Rs 3500 crore in loans and transfer a parcel of land in Noida for Rs 92 crore to its display unit, said by Samsung India Electronics Private Ltd in a filing.
Samsung Electronics started making smartphones in Noida on the outskirts of New Delhi in 2018. It stopped production in China last year, where it had to struggle with competition from local rivals.
The new display factory will help Samsung Electronics secure local supplies of one of the most expensive smartphone components at a time when the South Korean business is also struggling to fight back competition from India’s Chinese rivals.
Samsung is the second-biggest smartphone retailer in India after China’s Xiaomi Corp, has seen its shares fall by 5% in the country compared to the last three months, showed data from researcher Counterpoint.
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