Modi says India well on way to becoming global manufacturing hub

Judy Cobb
July 10, 2018

Samsung is set to inaugurate its biggest mobile factory in the world today.

The factory, built by South Korean phone maker Samsung Electronics, will have the capacity to fabricate 120 million smartphones per year and make everything from low-end smartphones to the company's flagship S9 model.

Samsung's new facility will not only help in mobile manufacturing but also double its production capacity of consumer electronics like refrigerators and flat-panel televisions - which will further consolidate the company's leadership in these segments, according to the reports. The new facility is spread over 35 acres in Noida's Sector 81.

Most major markets around the globe have become saturated with mobile devices, resulting in a slowdown of sales.

The prime minister said more than 1 crore mobile phones will be made in this new unit of Samsung, while 30% of this will be exported. Before the launch of the Noida plant Samsung was manufacturing 67 million phones in India, mostly at its other base in Tamil Nadu, Southern India.

He said the plant and what it represents for the two countries will go down in the history of bilateral relations of India and Korea.

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"In the last four years, the number of mobile phone manufacturing facilities has gone up from 2 to 120 and 50 such factories are in Noida".

Speaking on the new investment, a Samsung official had said that the latest investment in Noida plant would double the production capacity of smartphones.

India's smartphone market grew 14 per cent with total shipments of 124 million units in 2017, the fastest pace of growth among the top 20 markets, according to International Data Corp.

Samsung has also been populating printed circuit boards (PCB) right from its inception, whereas its Chinese rivals have started the PCB assembly just after the Indian government imposed a 10% duty on imports of populated printed circuit boards (PCBs), camera modules and connectors, making the imports of the components expensive while giving a stimulus to local manufacturing under its Make in India program.

The 35-acre Samsung Electronics facility in Noida sector 81 was added in 2005, and in June past year, the South Korean giant had announced Rs 4,915 crore investment to expand the Noida plant to double the production.

The prime minister said India has 40 crore smartphones in use and 32 crore people using the broadband internet. It will be officially inaugrated today by India's Prime Minister Narendra Modi and South Korean President Moon. The company has one design centre in Noida with workforce of over 70,000 people.

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