Samsung Eyes Bigger Manufacturing Role For India As Smartphone Demand Grows

Samsung is reportedly planning to expand its manufacturing operations in India, with more focus on producing smartphone components locally, especially displays. The move suggests the company wants to increase the amount of work done in India, instead of limiting operations to assembling finished phones. Also Read: Samsung Working On Wider Foldable Phone As Apple’s iPhone Fold Nears Launch Next Year

According to a report by The Economic Times, Samsung has applied for incentives under the government’s production-linked incentive (PLI) scheme for components. The application reportedly covers expanded assembly of smartphone display panels at Samsung’s existing facility in Noida. If approved, this would allow the company to increase the amount of value-added manufacturing done within India. Also Read: Samsung Galaxy A37, Galaxy A57 Camera Details Revealed Ahead Of 2026 Launch

Samsung’s Noida plant is already its largest smartphone manufacturing facility globally and has grown into a major export base over the past few years. The company started assembling display panels at the same plant in 2021 after shifting some operations out of China. The latest proposal is said to focus on scaling up capacity at Noida to support higher volumes, rather than moving production away from other countries. Also Read: Samsung Galaxy Z Flip 8 Could Use Exynos 2600 Chip Instead Of Snapdragon, Report Claims

Samsung SWA President and CEO JB Park told the publication that the company has also sought an extension under the smartphone PLI scheme, which recently ended. He said Samsung is in discussions with the government on the possibility of continued incentives under a new phase of the programme. Under the PLI framework, companies receive financial benefits if they meet yearly production targets set by the government.

Park also clarified that Samsung does not plan to shift manufacturing capacity from Vietnam to India. Vietnam will continue to remain Samsung’s largest manufacturing base globally. India could see more investment from Samsung if demand grows steadily and supports higher production levels.

Samsung is also said to be open to sourcing semiconductor chips from Indian suppliers at a later stage. This would depend on local manufacturers being able to meet the company’s requirements on quality, pricing, and scale. The company has indicated that it prefers to work with local partners and gradually add suppliers as capabilities improve.

India has become a key market for Samsung’s global business. In the 2025 financial year, the company’s revenue from India crossed $11 billion. Exports made up about 42% of that figure. Smartphones account for close to 70% of Samsung’s India revenue, with home appliances and computing products contributing the rest.