Samsung Reportedly Plans to Expand India Manufacturing With Focus on Phone Displays, May Source Chips From India

Samsung is reportedly planning to deepen its manufacturing footprint in India, with a renewed focus on localising display production for smartphones. According to a recent report, Samsung has applied for government incentives to expand smartphone display assembly at its facility in Noida, signalling a long-term commitment to the market. The move is expected to strengthen the supply chain, exports, and local value addition of the South Korean tech giant. The strategy also reflects India's growing importance as both a manufacturing base and an export hub for Samsung's global operations.

Samsung Unlikely to Shift Capacity From Countries Like Vietnam

The Economic Times reports that Samsung is awaiting approval to produce displays in India under the government's production-linked incentive (PLI) scheme for components. The company has sought incentives to assemble mobile phone display panels in the country. Instead of assembling finished devices, the company could soon build more value-added manufacturing capabilities within India.

Samsung already operates its largest smartphone manufacturing facility globally in Noida, which has become a major export hub over the past few years. The company began assembling display panels at this plant in 2021 after shifting operations from China.

Now, the South Korean tech conglomerate is said to be awaiting government approval to further expand smartphone display assembly at the same site. This firm is expected to add capacity for increasing demand, rather than relocating existing operations.

Samsung SWA President and CEO JB Park told the publication that the company has also sought an extension under the smartphone PLI scheme, which recently ended. He added that Samsung is in discussions with the government on the possibility of continued incentives under a new phase of the programme. Under the PLI scheme, companies receive tax benefits and financial incentives if they meet annual production targets set by the government.

The executive clarified that Samsung does not plan to shift manufacturing capacity from Vietnam to India. Vietnam will remain Samsung's largest global manufacturing base. However, he noted that India could see additional investment if demand grows naturally.

The company might also source semiconductor chips from Indian suppliers, provided they meet global standards for quality and pricing, Park told the publication, adding that Samsung prefers to work with local partners wherever possible and gradually expand its supplier base as capabilities improve.

India has become a critical market for Samsung's global operations. In the financial year 2025, the company's revenue from India crossed $11 billion (roughly Rs. 98,700 crore), with exports accounting for about 42 percent of that figure, according to the company.

Smartphones are said to contribute nearly 70 percent of Samsung's India revenue, while home appliances and computing devices make up the rest. Over the next decade, Samsung expects non-smartphone categories to contribute around half of its India revenue.