Samsung opens the world's largest phone factory in India

Isaac Cain
July 10, 2018

South Korean President Moon Jae-in's trip to India will help create the next largest market for his country, Seoul's trade minister said on Monday (July 9), calling India the next China for South Korea, Yonhap news agency reported. The newly-opened plant which has the capacity to manufacture 1 crore phones per month is expected to create 1,000 more jobs in the country.

Samsung India chief executive officer HC Hong said that the Noida factory, the world's largest mobile factory, is a symbol of Samsung's strong commitment to India. The South Korean president said he eagerly awaits Modi's visit to Korea.

The decision by Samsung comes at a critical time for the South Korean electronics giant, which is facing a tough battle from Chinese competitors for the control of India's massive smartphone market.

Speaking on the occasion, the Prime Minister said the new manufacturing unit is a step towards making India a manufacturing hub.

The South Korean electronics giant had previous year announced a fresh investment of Rs 4,915 crore to expand the existing plant by another 35 acres. Samsung is a long-term partner of India.

"I am happy to see Korean companies participating in India's digital transformation and I have full support for them", the South Korean President told the gathering.

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Within India, Samsung runs two factories, five research and development centers and one design center.

The more than 500 Korean companies operating in India were mostly concentrating in the automobiles, electronics and textiles "but going forward, we will expand cooperation to various areas, including shipbuilding, medical devices and food processing", Moon said.

The PM added the number of manufacturing factories in mobiles had gone up to 120 from just two since 2014. He spoke of the expansion of smartphones, broadband and data connectivity, which he described as signs of a digital revolution in India.

Prime Minister Modi also acknowledged Moon Jae-in's role in accelerating the peace process in the Korean peninsula.

The Indian Express reported on May 21 that the government's proposed framework includes efforts to improve the ease of doing business for electronic manufacturers and address concerns such as cost of financing, logistics, and bringing the entire supply chain ecosystem of production to India. In a statement issued then, Samsung said: "The expansion of the plant on an additional 35 acres of land adjacent to the current facility will double the production capacity of both mobile phones and refrigerators".

"India-Republic of Korea (RoK) relations has made great strides in recent years and has become truly multidimensional, spurred by a significant convergence of interests, mutual goodwill and high level exchanges", the Ministry of External Affairs had said in a statement.

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