Samsung shifts its display manufacturing facility from China to Noida
South Korean electronics giant Samsung has successfully shifted its display manufacturing facilities from China to Noida in Chief Minister Yogi Adityanath-led Uttar Pradesh, all thanks to India's industry-friendly policies. Samsung India expects the new facility to serve as the hub for display production in the country. What does this mean for the Indian electronics industry? Let's dig deeper.
On Sunday, a delegation from Samsung led by Southwest Asia's President and CEO Ken Kang met with Adityanath upon successful establishment of the new display manufacturing facility in Noida. The new facility supplements another Samsung facility in Noida that's touted to be the world's largest manufacturing facility for smartphones. Devices manufactured here are sold locally and exported to foreign markets as well.
The delegation reportedly highlighted that one of the main reasons for establishing a plant in Noida was India's policies for the industry that encouraged investment. Samsung suggested that it plans to make Uttar Pradesh a manufacturing hub for the company. In April this year, the electronics major had also started manufacturing smartphone displays at its older facility in Noida.
Meanwhile, Adityanath called Samsung's decision to shift manufacturing from China to Noida a classic example of the success of the 'Make in India' program. He assured Samsung of continued support from the state government over the coming years. Evidently, Adityanath was elated that the new plant would provide job seekers more employment opportunities in Uttar Pradesh.
Speaking of the impact Samsung's move could have on the Indian electronics industry, we believe that new manufacturing facilities can lead to significant changes. Prices for devices such as TVs, laptops, and smartphones could drop by a noticeable margin since Samsung provides display panels to many other companies, and because in India's price-sensitive market, price cuts force the competition to follow suit.