The Silicon Review ^Asia

Samsung manufacturers have informed the Indian government that it will be reducing its mobile phone manufacturing in the country until and unless it delays the “Make in India” plan for components such as display and touch panels. The Indian government has advanced the Phased Manufacturing Programme (PMP) timetable. So instead of starting the local manufacturing of the components cited above anytime in 2019-20 the Indian government expects companies to start by February 2019 or else these companies will be facing a 10% import duty that can go up to 11% depending on the surcharge. Since Samsung plans out their future roadmap they had already invested a certain amount keeping the PMP in mind. Samsung had inferred that the company will start manufacturing these components by March 2020. 

Due to these recent events, Samsung has informed the government that it will have to stop the manufacturing of Samsung flagship products like the Note 9 and S9 in India. Also, India does not make the display panels locally. This accounts for 25-30% of a mobile phone’s production cost. Also to keep in mind, the firm had inaugurated the world’s largest mobile phone manufacturing unit in Noida in 2018 July. The Invested amount was 4,915 crore. Its plan was to raise mobile phone capacity at the pant to 120 million units a year by 2020.