Samsung seeks to expand India manufacturing under PLI scheme

Samsung has applied to India’s production-linked incentive (PLI) scheme for mobile phone screen components and is seeking an extension of its existing approval under the smartphone PLI program.

The company, which operates its largest factory in Noida, said it may expand manufacturing capacity in India if needed but does not plan to shift production from Vietnam.

Samsung is considering sourcing semiconductors from Indian suppliers if prices are competitive.

The company said exports made up 42% of its India revenue in fiscal 2025, with revenue up 37% year-on-year to over 1 lakh rupee crore (US$11 billion).

Samsung is awaiting government approval to expand smartphone display assembly at its Noida facility, a project that began in 2021.

The company said it is looking to increase sourcing from Indian vendors as part of efforts to boost local value addition.

Samsung received incentives for four out of five years under the original smartphone PLI scheme, missing one year due to Covid-related disruptions.

🔗 Source: The Economic Times

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Implications, context, and why it matters.

Samsung’s smartphone Production-Linked Incentive (PLI) extension request moves ahead; terms not disclosed publicly

Samsung asked to extend its smartphone PLI approval, yet neither it nor the government has shared terms, so the criteria and impact remain unclear.
The original PLI for large-scale electronics paid on incremental sales over five years; officials have not said how an extension would treat base-year sales or set new thresholds.
Samsung says it got incentives in four of five years under the original plan, with one year missed due to Covid disruptions. It has captured most benefits and may need fresh investment pledges to qualify for extended support.
A separate PLI bid for phone screen parts adds complexity, since display assembly follows different rules than complete device manufacturing.

Suppliers and equipment makers could benefit from Samsung’s local sourcing drive

A bigger local sourcing mix opens near-term work for Indian makers of components and sub-assemblies, including display modules.
Samsung is open to buying semiconductors in India if pricing is competitive, which could create demand for local chip vendors that meet its quality and cost standards.
Automation plus testing tool firms can target added capacity at the Noida site, where display component assembly began in 2021, with approval sought to scale output.
Samsung’s India revenue reached Rs 1 lakh crore (1 trillion rupees) in fiscal 2025, up 37% year-on-year. Exports made up 42% of revenue, so partners tap a growing base with export momentum.