Samsung Electronics is extending its commitment to local manufacturing in India by venturing into laptop production. The South Korean tech giant plans to initiate laptop manufacturing operations at its Greater Noida factory, which primarily focuses on mobile phones. This move aligns with the Indian government’s “Make in India” initiative, enticing electronics manufacturers with incentives to establish production facilities in the country.
Samsung’s expanded Greater Noida factory will have the capability to produce between 60,000 to 70,000 laptops annually. This expansion represents a substantial investment ranging from Rs. 100 crore to Rs. 200 crore. An anonymous source mentioned in the report indicates that the new laptop manufacturing unit is set to commence operations in the coming month.
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This development comes in the wake of the Indian government’s recent imposition of licensing requirements for the import of laptops, tablets, and personal computers. These restrictions aim to bolster domestic manufacturing, particularly as global geopolitical relations evolve. The move seeks to ensure the use of “trusted and verified systems” in India’s tech ecosystem, whether imported or domestically manufactured.
In May, the government approved a significant Rs. 17,000-crore incentive as part of the Production Linked Incentive (PLI) Scheme 2.0. This scheme covers various IT hardware categories, including laptops and tablets. Over a six-year period, it is expected to generate incremental production worth Rs. 3.35 lakh crore. The initiative aims to encourage local manufacturing and reduce dependence on imports.
The move towards expanding local electronics production in India has garnered interest from major players in the industry. Apple and Samsung have expressed their desire to bolster their presence and manufacturing capabilities in the country. This reflects India’s growing significance as a hub for electronics manufacturing.
While Samsung’s commitment to local manufacturing is evident, the company has faced challenges in collecting manufacturing incentives it believed it was entitled to from the Indian government. These challenges highlight the complexities of navigating India’s incentive programs and the need for clear documentation.
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