Lucknow, NFAPost: Samsung has decided to invest Rs 4,825 crore to relocate its mobile and IT display production unit to NCR in Uttar Pradesh from China, the state government said.
The UP government’s cabinet has approved special incentives to Samsung Display Noida Private Limited on Friday. According to analysts, the new unit is expected to create 510 direct jobs. It will be operational next year.
“This is the first high-technique project of South Korea’s multi-national major which is being set up in India after relocating from China and the country will become third in the world to have such a unit,” the UP government’s spokesperson said in a statement.
South Korea’s Samsung Electronics Co currently makes more than 70% of the total display products used in TVs, mobile phones, tablets, watches, etc., in the world in South Korea, Vietnam and China.
Samsung along with Apple partners Foxconn, Wistron and Pegatron recently received approval from the Indian government under the production-linked incentives scheme. All these multinational companies were approved to avail incentive for producing mobile phones with invoice value Rs 15,000.
As per statistics, Samsung was the largest exporter of Uttar Pradesh with $2.7 billion of export in the last fiscal. It has set an export target of 50 billion dollars during the next five years.
As per the “UP Electronics Manufacturing Policy 2017‘, Samsung will get exemption of stamp duty in transfer of land. The state government will have to make financial provision of Rs 250 crore for this project during five years.
Samsung will also receive financial incentive to the tune of Rs 460 crore under Government of India’s Scheme for Promotion of Manufacturing Electronic Components and Semiconductors (SPECS), the state government said.
As per the company’s strategy, it is betting big on India and its has established the world’s largest smartphone making facility in UP’s Noida which was inaugurated by Prime Minister (PM) Narendra Modi in 2018.
Samsung India recently celebrated its 25th anniversary in India and announced a new ‘vision’ for the country with the campaign is named #PoweringDigitalIndia. As per the company game plan, the new program will be aimed at students across the nation, a refreshed local R&D strategy which Samsung claims will focus on the local startup community and new initiatives in manufacturing.
Expressing happiness over the company’s performance during its 25 years of India journey, Samsung Southwest Asia President & CEO Ken Kang said at 25, Samsung India is as young and vibrant as New India.
“Millions of our consumers, our partners and employees, have loved Samsung over the years to make us the country’s biggest, most trusted and most admired brand of mobile phones and consumer electronics, with almost every home in India having a touch of Samsung. Our new vision #PoweringDigitalIndia sets the course for India’s future growth, in which Samsung will continue to be its strongest partner,” said Ken Kang.
Ken Kang said the company is committed to working with the Government of India and various state governments to realize their vision of nation-building, digital inclusion, digital empowerment and bridging of the digital divide through multiple initiatives in manufacturing, R&D, creation of jobs and entrepreneurship, responsible citizenship and transformational innovations.
On the research and development front, Samsung’s R&D centres in India will continue to work on areas such as 5G, AI, IoT as well as on cloud services. In addition to this, the company claims they will expand Open Innovation with startups, students and universities.