Samsung to Begin Manufacturing Laptops in India Next Month

Samsung to Begin Manufacturing Laptops in India

Samsung to Begin Manufacturing Laptops in India Next Month

New Delhi, September 20, 2023 - South Korea-based electronics giant Samsung has announced its plans to commence laptop production in India starting next month, as reported by Mint on Tuesday. The report cites information from two individuals familiar with the matter, revealing that this move aligns with the Indian government's efforts to promote domestic hardware production.

Samsung's Noida factory, known as one of the world's largest mobile phone factories, will now serve as the manufacturing site for these laptops. Established in 2018, this facility has recently expanded to include a laptop manufacturing unit with an estimated annual production capacity of between 60,000 to 70,000 units.

This development makes Samsung one of the first international companies to initiate laptop production in India without a local collaborator, in compliance with new regulations set by the Indian government to control hardware imports.

While import restrictions have been announced, their implementation may require some time. Reuters reports that the Indian Ministry of Information Technology has proposed a more efficient import registration process set to begin on November 1. Under the new "import management system," companies will be required to obtain "registration certificates" before importing laptops, tablets, and personal computers, replacing the earlier licensing requirements stipulated in the August 3 order.

The Ministry shared this proposal with industry representatives in a meeting held last week.

In addition to import restrictions, the Indian government has also introduced a production-linked incentive (PLI) scheme for IT hardware, offering incentives totaling Rs 17,000 crore (approximately $2.3 billion USD). Samsung opted not to apply for this scheme, as the application period concluded in August. Out of the 40 applications received, approval has been granted to 30 companies to participate in the PLI scheme.

Media reports have also indicated that other technology companies such as Asus, Acer, HP, and Lenovo are exploring potential partnerships with local manufacturers to produce IT hardware in India.. . . . . .. . . . . . .. . . . . .

India's electronics imports, including laptops, tablets, and personal computers, amounted to a total of $19.7 billion in the financial period from April to June, marking a 6.25 percent year-on-year increase. Samsung's decision to manufacture laptops in India is expected to support the Indian government's vision of strengthening the domestic manufacturing industry and reducing reliance on electronic hardware imports.

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