Samsung’s shift from China to India: Make in India call on new heights
The South Korean conglomerate Samsung has shifted its mobile and IT display production unit from China to Noida. India will be the third country to have Samsung’s mobile and IT display production unit, a UP government official said.
The initiative was announced soon after Samsung completed 25 years in the country on December 9 2020. Prime Minister Narendra Modi had inaugurated Samsung’s largest mobile manufacturing in Noida in 2018.
In its press release, Samsung stated that the display manufacturing unit is shifted from China to Noida. The company considered India’s better industrial-friendly policies and industrial environment among the reasons for shifting the plant to India. It had earlier started manufacturing smartphone displays in Noida this year in April.
A delegation conducted by Ken Kang, the company’s Southwest Asia President & CEO called upon Yogi Adityanath, Uttar Pradesh Chief Minister on Sunday. The delegation declared that it has completed the establishment work of its new display manufacturing unit in Noida, which replaces the one based in China. One of the reasons for establishing the plant in Noida was India’s investor-friendly environment. It further said that Samsung aims to make Uttar Pradesh has its manufacturing hub.
“Our Noida factory, the world’s largest mobile factory, is a symbol of Samsung’s strong commitment to India, and a shining example of the success of the Government’s ‘Make in India’ programme. Samsung is a long-term partner of India. We ‘Make in India’, ‘Make for India’ and now, we will ‘Make for the World’. We are aligned with Government policies and will continue to seek their support to achieve our dream of making India a global export hub for mobile phones,” Mr. HC Hong, Chief Executive Officer, Samsung India, said.
The chief minister said during the meeting with the delegation, that Samsung’s Noida factory is a typical example of the success of the ‘Make in India’ programme. The Uttar Pradesh CM additionally added that the new manufacturing unit will help create more job opportunities for the state’s youth. Adityanath guaranteed the delegation that the state government will continue to give help to the Samsung Company in future as well. Samsung formerly had its world’s biggest manufacturing plant in Noida.
Stating the impact Samsung’s move could have on the Indian electronics industry, it is believed that new manufacturing services can lead to major transformations.
Cost for devices such as laptops, TVs and smartphones could drop by a considerable margin as Samsung provides display panels to different other companies.
Some of the few possibilities that aided this move was
· Make in India drive: Samsung’s relocation marks a remarkable shift under the Make in India and Atma Nirbhar Bharat initiatives.
· The PLI scheme: in a bid to boost electronic manufacturing in India the government launched a $6.65 billion PLI scheme. The aim is to turn the country into an export and manufacturing hub and cut down on import bills.
· China’s loss is India’s gain: as many as 50 companies have moved out of China, news reports suggest. The US China trade war, global supply chain disruption, increase in labor cost and China’s aggressive policies have only added to this shift.
