Samsung is eyeing India as a potential hub for its 5G equipment production, as it contemplates alternatives to China for its manufacturing expansion. The South Korean tech giant is weighing India against Vietnam for this shift.
What Happened? Given the current geopolitical climate, expanding further in China seems off the cards for Samsung. An industry insider speaking to Mint states, “India is emerging as a top contender to replace China for factory setups.”
Samsung’s successful track record of producing consumer electronics, including smartphones in India, bolsters its confidence in considering the country for telecom gear production.
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Why it Matters? While Samsung remains tight-lipped about these plans, it’s worth noting that the company already has deals to supply 5G equipment to major Indian carriers like Reliance Jio and Bharti Airtel. With competitors Nokia and Ericsson already producing network equipment in India, it seems logical for Samsung to follow suit.
The Indian government’s production-linked incentive scheme, launched in 2021, offers perks to companies producing telecom gear locally. Although Samsung didn’t hop on this bandwagon initially, its status as a ‘trusted source’ for telecom gear, approved by the National Security Council Secretariat, gives it an edge, especially with Chinese suppliers sidelined due to security concerns.
With India’s skilled telecom workforce and ambitions to export locally-made telecom gear, Samsung’s plans could align perfectly, potentially making India an export hub for regions like Southeast Asia, the Middle East, and Africa.
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