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| Samsung plans to move smartphone production to India |
Samsung plans to move a large portion of its smartphone production from Vietnam and other countries to India.
The South Korean giant has ramped up production of Indian smartphones in recent years.
Samsung has the largest smartphone manufacturer in Noida, India, which will remain an important manufacturing hub in the future.
Samsung plans to manufacture $ 40 billion worth of smartphones in India, according to the latest Economic Times report.
A person familiar with the company's plans told the newspaper that Samsung will diversify its product line to manufacture smartphones in India under India's state production incentive scheme (PLI).
The Government of India's Production Incentive Scheme (PLI) aims to attract global manufacturers to India and drive them out of countries like China and Vietnam.
Samsung's move is filling a big void in India's efforts to avoid cheap imports from the Association of Southeast Asian Nations (ASEAN) for an Indian free trade agreement with trade blocs, government officials said.
The plan is expected to have an impact on the current production of smartphones in Vietnam and other countries.
Vietnam is another manufacturing center for Samsung. Vietnam is currently the second largest exporter of smartphones after China. Samsung shut down its last factory in China last year.
Of the $ 40 billion of smartphones that Samsung plans to manufacture in India over the next five years, the $ 200 devices could exceed $ 25 billion.
A senior government official said: Most of the $ 200 smartphones are exported from India to other markets.
The company is said to have stopped manufacturing cell phones in South Korea due to rising labor costs.
According to industry estimates, Samsung produces about 50% of smartphones in Vietnam, and the company also produces smartphones in Brazil and Indonesia.
The South Korean company is also producing televisions for the domestic market in India and plans to open a smartphone screen factory in the country.
The global export market for smartphones is around 270 billion USD, and Samsung's market share is 22% in terms of value and 20% in volume.
In addition, Apple, Samsung's main competitor, has increased iPhone production in India.
Apple started producing cheap old smartphones in India, but recently it started producing devices such as (iPhone XR) and (iPhone 11) in India.