Samsung goes big in India with 'world's largest mobile factory'

Joshua Bennett
July 10, 2018

The factory, inaugurated jointly on Monday by Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in, will also help Samsung compete more effectively with rivals such as China's Xiaomi, which became India's biggest smartphone brand by shipments earlier this year.

Noting that the factory would not only generate more jobs but also make India a global export hub, Modi said, "India is now second in terms of phone manufacturing".

Samsung has Invested close to 5,000 Crore Rupees in this plant and aims to Manufacture 12 Crore Mobile Handsets annually which will result is massive job creation. He said the investment of about Rs. 5000 crore, would not only strengthen Samsung's business links with India, but is also significant in the context of the relationship between India and Korea.

Following this, Prime Minister Modi will then hold official talks with President Moon at Hyderabad House, which will be followed by an official lunch.

Demand for new mobile phones is surging in India, helped in part by billionaire Mukesh Ambani offering US$23 4G feature phones, free voice services and cheap data plans. India's government, naturally, is excitedly embracing the announcement as art of its "Make in India" initiative. The prime minister said more than 1 crore mobile phones will be made in this new unit of Samsung, while 30% of this will be exported. Expansion, which will be fully complete in 2020, is expected to almost double Noida (New Okhla Industrial Development Authority), India's current phone producing capabilities from 68- to 120 million phones per year. The factory is located in Noida's sector-81. "The investment reaffirms Samsungs commitment to Make- in-India and Make-for-India and to the state of Uttar Pradesh", Samsung India had stated in a statement. The mentioned plant will double the smartphone production. Samsung is a long-term partner of India.

Samsung is expected to unveil the Galaxy Note 9 in Brooklyn, New York, on August 9 and is teaming up with ARM to work on a mobile chipset that will run at speeds above 3GHz. They will also visit a Samsung plant in Noida.

"They travelled using tokens with others passengers and there was no delay in the Blue Line due to this", the official said.

This is Moon's first-ever state visit to India after he took over as the President previous year. "This is a great milestone in the history of Samsung India which will take our country's manufacturing abilities to newer heights", Asim Warsi, Global Vice President, Samsung India, told IANS on the sidelines of the event.

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