Samsung to begin laptop production in India amid government initiatives

Last Updated: 26th September, 2023 13:17 IST

Samsung’s extensive Greater Noida factory, primarily dedicated to mobile phone production, has recently expanded for a new laptop manufacturing unit.

The development aligns with the Indian government’s active efforts to promote domestic manufacturing | Image Credit: Samsung

Samsung Electronics is gearing up to initiate laptop production in India, according to a media report. The development aligns with the government’s active efforts to promote domestic manufacturing by offering financial incentives, tax benefits, and import regulations.

Samsung’s extensive Greater Noida factory, primarily dedicated to mobile phone production, has recently undergone expansion to accommodate a new laptop manufacturing unit. It is anticipated that this unit will have an annual production capacity ranging from 60,000 to 70,000 units, Mint reported citing sources.

While this capacity may appear modest compared to the production volumes of Dell, Lenovo, and HP in India, it represents a significant step for Samsung, which has traditionally played a minor role in the Indian laptop market.

The Noida facility, already the largest mobile phone manufacturing factory for the company, will incorporate the additional lines dedicated to laptop production. The new manufacturing unit is scheduled to begin operations in the coming month, albeit initially at a limited capacity.

Reduction in imports

Image Credit: Pixabay

This strategic move positions Samsung as one of the first foreign hardware manufacturers without local laptop production capabilities to commence manufacturing in response to the government’s proposed measures. These measures aim to reduce imports of laptops, tablets, personal computers (PCs), servers, and ultra-small form factor devices, with restrictions set to take effect from November 2024. The overarching goal is to decrease India’s reliance on imports, particularly from China.

Establishing this laptop manufacturing capacity is expected to necessitate an investment of approximately Rs 100-200 crore.

The Ministry of Electronics and Information Technology, in collaboration with the Directorate General of Foreign Trade under the Ministry of Commerce, is in the process of establishing an import management system. This system will require companies importing IT hardware, including laptops and servers, to register from November 1 and reduce their imports through annual quotas. The government plans to allow a specific quantity of products to be imported each year, with a gradual reduction over subsequent years. These restrictions will be subject to review after a six-year period.

Government incentives

In addition to import restrictions, the government is offering incentives totalling Rs 17,000 crore through a production-linked incentives (PLI) scheme for IT hardware over a period of five to seven years. Notably, Samsung India did not participate in the IT hardware PLI scheme, which concluded at the end of August, according to data released by the IT ministry.

Samsung already makes a range of its consumer products in India, with its largest mobile phone manufacturing facility based in the country—a venture that began in 2017 with an investment of nearly Rs 5,000 crore.