On Monday 9th of July 2018, Samsung electronics officially opened which they claim to be the world’s largest mobile phone manufacturing plant. The prime minister of India Narendra Modi and the president of South Korea Moon Jae-in were present to jointly inaugurate the factory which is located in Noida, India. The South Korean tech giants make this move as it seeks to expand its production in the world fastest growing major mobile phone market.
The factory located in Noida in the outskirts of New Delhi will allow Samsung to make mobile phones at a very low cost compared to other phone manufacturing hubs such as China which becoming more expensive. This lower cost is due to the scale of the factory.
The new factory will allow Samsung to be able to compete with its rivals in the mobile phone industry such as China’s Xiaomi, which is currently the biggest smartphone brand in India by shipments a status it achieved in earlier this year.
The prime minister of India Modi in his speech at the inauguration said “ This 50 billion-rupee investment will not only strengthen Samsung’s business ties in India, it will also play a key role in India-Korea relations.
Last year Samsung said that it was going to spend 49.2 billion rupee which is equivalent to $716.57 million over three years to expand the capacity of its factory in Nodia. Samsung who have been manufacturing phones in India since 2007, also have plans to export India made phones. This is according to a company statement.
Prime minister Narendra Modi’s government has imposed taxes on the importation of key smartphone components which is part of a plan to reduce importation and encourage electronics manufacturing in India which would boost economic growth and create jobs for millions of Indians.
Prime minister Modi’s “make in India” campaign which was launched in 2014 aimed at making India a global manufacturing hub by encouraging both multinational as well as domestic companies to manufacture their products within the country. It is still a long way from reaching its ambitious job provision targets. It has although had some success in the mobile phone and components industry with more than 120 factories manufacturing and assembling mobile phones and other accessories such as chargers, earphones, batteries and power banks.
The new facilities in Nodia will allow Samsung to double its current capacity for phones in Nodia to 120 million units annually after the phased expansion is completed according to a company statement.