Samsung to Manufacture Laptops in India, Boosting Manufacturing Base
Samsung, the global technology giant, has announced its plans to start manufacturing laptops in India this year. This move marks a significant step towards strengthening Samsung's manufacturing base in the country and highlights India's growing importance in the global manufacturing landscape. India as a Manufacturing Hub: Samsung considers India as its second-largest manufacturing base and recognizes the country's potential for growth. The decision to manufacture laptops in India reflects Samsung's confidence in the Indian market and its commitment to leveraging India's manufacturing capabilities. Supportive Policies and Expansion: T.M. Roh, the president and head of Samsung's mobile experience (MX) business, credited the Indian government's supportive policies for enabling the company's expansion in the country. These policies have played a crucial role in attracting global companies to invest in India's manufacturing sector. Optimizations and Global Demand: Roh acknowledged that the global demand slowdown in 2023 necessitated some optimizations at Samsung's Noida facility, which is the second-largest base for the company. However, he emphasized that the importance of this facility remains unchanged, and Samsung will continue to optimize it as per global demand requirements. Government Initiatives: The Indian government has implemented various initiatives to reduce the country's dependence on imported IT hardware. In August of the previous year, restrictions were introduced on the import of laptops, tablets, servers, and other items. These measures align with the production-linked incentive (PLI) schemes for consumer electronics, encouraging manufacturers to produce laptops and tablets in India. Revamped PLI Scheme: To attract manufacturers of IT hardware, including laptops and tablets, the Indian government introduced a revamped PLI scheme worth ₹17,000 crore in May 2023. The scheme aims to boost domestic production and decrease the country's reliance on imports. India currently imports laptops and tablets worth about $8 billion annually. Market Growth and New Technologies: Roh mentioned that market indicators project a 5% increase in market growth in 2024, bringing it back to 2022 levels. To drive demand, Samsung plans to introduce new features such as Galaxy AI, which is AI on mobile phones. These advancements are expected to create new use cases among smartphone users and fuel demand in the coming year. Focus on AI and Premium Products: While the replacement cycles for smartphones are getting longer globally, more consumers are purchasing high-end premium products. Samsung intends to capitalize on this market trend by focusing on AI technology for mobile phones. The company aims to bring Galaxy AI to around 100 million units within the year, providing enhanced experiences and usability to consumers. Collaboration with the Government: Samsung has a history of producing feature phones, smartphones, wearables, and tablets in India. Roh stated that the company will continue to collaborate with the Indian government to strengthen its manufacturing capabilities in the country. The R&D centers in Noida and Bangalore play a vital role in developing state-of-the-art smartphone technology and optimizing AI for mobile devices. Samsung's decision to manufacture laptops in India demonstrates its commitment to expanding its manufacturing base and leveraging India's potential as a manufacturing hub. With the support of the Indian government's policies and initiatives, Samsung aims to enhance its presence in the Indian market. By focusing on AI technology and collaborating with the government, Samsung strives to provide innovative products and experiences to Indian consumers while contributing to the growth of the Indian manufacturing sector.
