CHENNAI: South Korean electronics major Samsung is preparing to significantly deepen its manufacturing footprint in India, signalling a shift from a narrow focus on assembling finished devices to a broader strategy centred on local production, exports and component manufacturing. The company has applied under the government’s production-linked incentive scheme for components to set up manufacturing of mobile phone displays in India, according to reports, which quoted Samsung’s Southwest Asia region president and CEO JB Park.
Samsung's fresh move marks one of its most important investments in the country’s electronics value chain to date. Unlike some global manufacturers that are relocating existing production lines from other countries, Samsung’s approach is based on creating fresh capacity in India. The company has indicated that it does not intend to move plants from established hubs such as Vietnam, which remains its largest global manufacturing base. Instead, India is being positioned as a complementary growth centre where new manufacturing lines can be added as demand expands, both in the domestic market and overseas.
Samsung already operates one of the world’s largest mobile phone factories in India's Noida, which has emerged as a key export base over the past few years. A growing share of the company’s India-made smartphones are shipped to global markets, reflecting how the PLI scheme has helped improve scale and cost competitiveness. By seeking incentives to manufacture displays locally, Samsung is now looking to address a critical gap in India’s electronics ecosystem, which has so far remained heavily dependent on imports for high-value components.
Displays are among the most complex and capital-intensive parts of a smartphone, and localising their production would substantially raise value addition within India. It would also reduce supply chain risks and logistics costs, while potentially encouraging a wider network of suppliers for related materials and sub-components to invest in the country. For India, attracting display manufacturing has long been a strategic objective, as it represents a step up from assembly into more sophisticated manufacturing.
The move also has a competitive dimension. With rival smartphone makers rapidly expanding production and exports from India, Samsung appears keen to strengthen its long-term position by embedding itself deeper into the local supply chain rather than relying primarily on imported components. This approach may be slower than simply shifting capacity from elsewhere, but it suggests a more durable commitment to building manufacturing capabilities within the country.
At the same time, challenges remain. Component manufacturing demands high levels of technological precision, reliable infrastructure and a mature supplier base, areas where India is still catching up with more established electronics hubs in East and Southeast Asia. Continued policy support and stability in incentive regimes will therefore be critical if large investments such as display fabrication are to materialise and scale up.
Overall, Samsung’s decision to apply for PLI incentives for display manufacturing points to a broader recalibration of its India strategy. By combining local production, export-led growth and component-making, the company is positioning India not merely as a low-cost assembly location, but as an integral part of its global manufacturing and supply chain network.