Samsung could relocate much of its production to India

by Jerry

Samsung could soon bet on India. Indeed, the manufacturer would consider relocating its existing plants in Southeast Asia to the subcontinent. A way to take advantage of an advantageous market and an even cheaper workforce.

Credits: Kote Puerto/unsplash

India could become Samsung's next Eldorado. The Korean firm could relocate most of its factories to the subcontinent. A boon for the country that would see Samsung strengthen its position. The company's largest factory is already in India, as it is located in Noida, on the outskirts of New Delhi. But most of its smartphones, half of them, are produced in Vietnam. The firm also assembles its products in other countries, such as Indonesia, Brazil and China.

The Economic Times reports that Samsung plans to manufacture most of its smartphones in India in the future, producing the equivalent of $40 billion. The giant plans to assemble $25 billion worth of smartphones at less than 200 euros to sell in other markets. A major investment, well helped by Indian economic policy.

A win-win economy

The Korean company could indeed take advantage of the advantages put in place by the Indian government for high-tech companies: the PLI (Production Linked Incentive) program. Designed to attract foreign investors, this program can pay significant premiums to the manufacturer for every smartphone manufactured and sold in the country.

Related: Samsung Galaxy S20 test: the smallest sibling is not to be taken lightly

Samsung could also benefit from a cheap workforce and centralize its production. It should be noted that the manufacturer still has factories in South Korea, where living standards have become higher in recent decades and where wages have logically increased. Samsung would therefore be removing the last remnants of its local production and transferring them to the Indian market.

Samsung would not be the first to make this choice. Apple is indeed assembling some of its new iPhones in India, to the detriment of China. An economic choice, but also a political one. Tensions between the United States and the Middle Kingdom have been palpable lately and some companies are doing everything they can to distance themselves from the country.

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