Samsung Electronics announced the opening of world’s biggest mobile phone manufacturing facility in India as they want production in the world’s fastest-growing major mobile phone market. Prime Minister Narendra Modi and Moon Jae-in, President of South Korea inaugurated Samsung Electronics Co. Ltd’s mobile phone factory in Noida. The capacity is spread over 35 acres in Noida’s Sector 81.
This manufacturing facility in Noida will permit Samsung to produce the phones at a lower price due to its scale when other phone making centres such as China are becoming more expensive day by day, analysts in the sector said.
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Recently, India became the world’s second-largest smartphone market after China. According to a report by Cisco Systems, there will be 780 million connected smartphones in 2021, compared with 359 million in 2016. So the Indian smartphone market is important for Samsung.
Prime Minister Narendra Modi’s government has imposed taxes on imports of key smartphone components as part of a plan to encourage electronics manufacturing in India which would increase the growth and also helpful for Indian people as it creates new jobs in India.
Samsung claimed a Rs 4,915 crore investment to expand the Noida plant in June last year and after a year, the new facility is ready to double production. The company is currently manufacturing the 67 million smartphones in India and with the new plant being functional, it is expected to manufacture nearly 120 million mobile phones. The manufacturing facility not only limited to the mobiles, the growth of the current facility will double Samsung’s production volume of consumer electronics like refrigerators and flat panel televisions.
Samsung has two manufacturing plants – in Noida and in Sriperumbudur, Tamil Nadu – five R&D centres, and one design centre in Noida, employing over 70,000 people and expanding its network to over 1.5 lakh retail outlets. The new Samsung’s Noida plant can produce 12 crore mobile phones every year, ranging from low-end smartphones to its flagship phones, and will create 15,000 local jobs.