Samsung readying a $500 million Noida manufacturing plant for mobile displays

Samsung to set up a new plant for manufacturing displays in India

“Samsung will set up a new mobile display manufacturing plant in India this year with an initial investment of $500 million”

Last year, we came across a report surrounding Samsung’s new venture in India. The report suggested that Samsung would establish a new factory to manufacture smartphone displays in the country. The company had even signed an MoU (Memorandum of Understanding) with the UP government back then. As it turns out, it might be time for the company to start the same.

A new regulatory filing has now revealed that Samsung Display has got the final go-ahead, and the project is right around the corner. The South Korean tech giant is investing around $500 million into the plant in Noida, the same place where the company has built its largest smartphone manufacturing facility in the world. Samsung’s interest in the Indian smartphone ecosystem is quite apparent now. Samsung India Electronics, the Indian unit for Samsung, has transferred a lot to Samsung Display in its existing plant layout in Noida. Furthermore, it has sanctioned an initial loan of around $500 million to the Samsung Display wing. Samsung Display Noida has now been incorporated “with the principal business of manufacturing, assembling, processing, and sales of displays (including their parts, components, and accessories) for all types and sizes of electronic devices.”

Initially, the plant will remain exclusive to the manufacturing of display panels for smartphones. This, however, won’t stay to be the case forever as the company is tipped to expand further in the times to come, and it will try its hands on the manufacturing of displays for TVs and laptops as well. This will, of course, happen once the plant achieves the desired ROI and starts manufacturing display components to other brands (the same thing that Samsung does in the other parts of the world). As far as the production is concerned, it is tipped to begin within the year 2020. Furthermore, we may also see it manufacture other components (primarily the smartphone batteries) in India later this year, essentially making the Samsung smartphones readily available at more affordable costs in India.

It is estimated the company plans to double its smartphone production in the country to around 120 million units per year at the Noida plant.

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SOURCEThe Economic Times