Samsung Electronics is set to commence laptop production in India later this year, signalling a shift in its manufacturing operations. T.M. Roh, the President of Samsung Electronics’ mobile business, has announced this development during a media briefing on Monday. The company, which currently manufactures laptops in China and Vietnam, is now set to utilize its factory in Noida, India, to cater primarily to the domestic market.
Samsung Electronics is a multinational company and one of the world’s leading manufacturers of consumer electronics, semiconductors, and information technology products. With its headquarter in Suwon, South Korea, Samsung has established itself as one of the global giants in the electronics industry. The company’s diverse product portfolio includes smartphones, televisions, home appliances, memory chips, and display panels. Known for innovation, Samsung has played an important role in shaping the digital domain with its technology and commitment to quality.
T.M. Roh, the President of Samsung Electronics’ mobile business highlighted that the decision to manufacture laptops in India is part of Samsung’s broader plan to strengthen its manufacturing presence in the country. Although the company did not apply for incentives under the Indian government’s Production Linked Incentive (PLI) scheme for IT hardware, which includes laptops, Roh stressed upon the important role of Samsung’s manufacturing hub in India for its global operations.
“We intend to produce Samsung laptops in India as well, which will be provided to the Indian market. The setup and preparation are currently underway, and we will be able to make supplies from this year,” stated T.M. Roh.
Samsung’s decision to produce laptops locally aligns with the company’s vision to support the Indian government’s “Make in India” initiative, promoting indigenous manufacturing. Mr Roh acknowledged the support and cooperation received from the government, highlighting the importance of their manufacturing hub in Noida for Samsung’s global operations.
Despite the challenges faced by Samsung’s smartphone exports from India due to a decline in global shipments, Mr Roh expressed optimism about the growth in the mobile phone market in 2024. Market research organizations are projecting a 5% growth in both value and volume for mobile phone shipments this year.
“We will continue our cooperation with the provincial (state) and national government, and by doing so, I believe we will be able to help further strengthen the manufacturing capability of India overall,” Mr Roh said. While Samsung’s exports from India have faced challenges in recent years, the company remains optimistic about the future. Mr Roh pointed out the importance of maintaining good cooperation with the Indian government and Samsung’s team in India to navigate challenges and improve the manufacturing capability of the country.
The slowdown in exports has been attributed to missed production targets for the financial year 2022 under the government’s PLI scheme for smartphones. The government recently offered about Rs 500 crore worth of incentives for the financial year 2021, nearly half of the Rs 900 crore initially claimed by Samsung.
“We are cooperating very closely with the Indian government as well as the Samsung team in India, and obviously the cooperation has been quite beneficial. And by maintaining such good cooperation, we will be able to find ourselves in a better situation,” Mr Roh reassured.
Highlighting the importance of Samsung’s production base in Noida, Mr Roh stressed that it is affected not only by domestic demand but also by the global smartphone market. Despite a negative growth trend in the global smartphone market last year, Mr Roh pointed out that the premium and high-end segments have remained largely unchanged. “This year, we believe there is also going to be growth coming from the premium and high-end segment much faster than the overall market average,” Mr Roh stated.
Market tracker IDC has noted a shift in power at the top of the smartphone market, with Apple iPhones securing record-high market share in 2023. Samsung now aims to regain its position at the top with the introduction of Galaxy AI, the generative AI technology behind the company’s latest flagship S24 smartphones. Mr Roh expressed confidence that Galaxy AI would bring fresh energy into the mobile market and generate new growth momentum.
Samsung’s R&D centers in Noida and Bengaluru played a remarkable role in developing Galaxy AI, according to Roh. He revealed that Samsung plans to bring this technology to 100 million devices worldwide in the current year. Despite the substantial resources invested in developing AI capabilities, Mr Roh announced that Samsung would provide these experiences free of cost to customers until 2025.
“According to our analysis, there are various needs for mobile AI. So, there will be consumers who will be satisfied with using the AI capabilities for free. Then there could also be customers who wish for even more powerful AI capabilities and are willing to pay for them. In the future decision-making, we will take all these factors into consideration,” Mr Roh explained.
