Samsung to join Apple in making India its production hub null

Apple is already in the process of making India its major production hub. Its arch rival Samsung Electronics is well on the course for such a move.

Samsung is contemplating a plan to shift a major part of its production of smartphones from Vietnam and and other countries to India. The idea is to make India its production hub and devices worth $40 billion are planned to be manufactured here over the course of next five years.

Apparently, Samsung has submitted to the Indian government a proposal for the same. And much of what is to be manufactured will be exported.

The Economic Times, quoting a person familiar with development, said “Samsung is likely to diversify its production lines for making smartphones to India under the PLI (Production Linked Incentive) scheme and this will have an impact in its existing capabilities across various countries like Vietnam.”

As of now, around 50% of Samsung phones are made in Vietnam. Samsung has also manufacturing units in Indonesia, Brazil, and of course, South Korea. It is said that Samsung is diminishing its production lines in South Korea due to high labour cost.

Samsung is the the next big smartphone maker after Apple to eye India as a major production base. Apple’s iPhone contract manufacturer Foxconn is eyeing India for re-location of its production lines from China, a move that may generate more than 55,000 jobs in the country and boost Make in India initiative. 

Apple has reportedly started manufacturing its current flagship iPhone 11 series at one of its contract manufacturer Foxconn’s plant near Chennai in India. Apple’s two other contract manufacturers Wistron and Pegatron — have also applied to take benefits of India’s PLI scheme that is aimed at attracting global manufacturers from other productions hubs like Vitenam and China. The scheme offers incentives between 4 and 6 per cent on the production value of phones manufactured in India.

“No matter if it’s India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each,” Foxconn chairman Young Liu has been quoted saying recently about the move to shift bases from China.

Apple, it is said, is likely to shift many production lines from China to India to cater to export demand of around $5 billion as well as serving to the domestic one. Not only Apple will manufacture iPhones but it may also produce computers, tablets and laptops, reports say.

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