Samsung Open To Sourcing “Made In India” Semi-Chips
Synopsis
Samsung has applied under the PLI scheme to make mobile phone displays in India and seeks more time under the smartphone PLI programme. The company does not plan to move existing capacity from Vietnam but could expand its Noida facility if demand rises. Samsung is open to sourcing chips from India if competitively priced. Exports made up 42 per cent of Samsung's India revenue in the financial year 2025 which rose 37 per cent to cross Rs 1 trillion
Samsung aims to consolidate its manufacturing presence in India by increasing local production, exports, and component-making rather than moving factories from other countries. The company has applied under the production-linked incentive scheme for components to manufacture mobile phone displays in India,
It has also approached the government for more time under the smartphone PLI programme, which ended recently. JB Park, president and CEO of Samsung's Southwest Asia region, said that "Samsung is keen to make India a key technology and manufacturing centre". He also added, "We are also in talks with the government on a possible continuation of the incentives under a new phase of the PLI scheme".
No Shift from Vietnam, But Room to Grow in Noida
It does not plan to relocate any of the existing manufacturing capacity from countries such as Vietnam to India. Vietnam remains the company's main global manufacturing hub. However, Park added that more investment in India could take place if demand increases naturally. Moving already-installed capacity does not make business sense, he quoted.
Samsung is not worried about Apple's competition
Samsung has been struggling to hold its top position in the high-end smartphone segment in India against the competition that mainly comes from Apple. As a result, Apple has considerably increased its local manufacturing. Apple is moving some of its production lines out of China, citing concerns over geopolitics.
The media report quoted Park as saying that despite the fact that iPhones are gaining popularity among the youth of the consumer market in the last couple of years, Samsung is not really concerned as changes in preferences of customers are typical of a trend over time. He also pointed out that Android phones still dominate India's smartphone market, accounting for nearly 90 per cent of users, where Samsung still enjoys a strong position.
Samsung credited the PLI scheme for its export boost in India. For Samsung India, exports comprised 42 per cent of its revenues in FY 2025. The revenues of Samsung India had increased 37 per cent YoY to cross Rs 1 trillion.
PLI Scheme Provides a Fillip to Exports
Samsung exports a large number of products from India, including top-of-the-line flagship devices. Park described the export growth as steady and sustainable, provided policy support continues.
Samsung is on the way to getting government approval for expanding smartphone display assembly at its Noida plant. The project was a brownfield expansion that started in 2021. The company is also looking forward to increasing sourcing from Indian suppliers to raise local value addition over time, the news report said.
The request of the company for a PLI extension shows its intention to continue getting government support for expanding manufacturing in India. Recently, the smartphone PLI scheme ended, but Samsung expects the government to launch another phase.
This would be a major step forward for the company in India: until now, most components of displays were being imported. With local manufacturing, there would be considerable cost reductions and a boost to the government's goal of value addition in electronics locally. It's all about price and quality, according to Samsung. India is trying to encourage a semiconductor manufacturing industry with government incentives, but production has not yet started at the planned chip factories.
For the time being, though, Samsung is likely to continue importing most chips; if the economics make sense, it could be a customer when India's chip industry develops. The Noida facility is the mainstay of Samsung's manufacturing base in India. It makes more sense to expand this facility rather than opening a new factory that would require huge investments in creating infrastructure and training workers.
Samsung would grow in India on the basis of local demand and export opportunities. If the market grows enough to justify more capacity, Noida is the natural place to expand.
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At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
