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Samsung boosts India's presence with new investments in smart manufacturing and R&D

Samsung's Investment in Smart Manufacturing and R&D in India to Enhance Its Position in the Premium Smartphone Segment

21 March 2023


Kunal Tyagi

India produced 3X more unicorns than China in 2022.png
  • In its cell phone factory in Noida, India, Samsung is investing in smart manufacturing capabilities.

  • The business already produces its high-end Galaxy S23 series in India, and Bengaluru is home to a sizable R&D facility.

  • By improving the content development process and working with regional vendors, Samsung hopes to gain market share in the premium class.

In its mobile phone facility in Noida, India, Samsung Electronics, the Korean electronics giant, plans to invest in smart manufacturing capabilities. The investment will increase production's competitiveness, according to T M Roh, President and Head of the Mobile Experience Business at Samsung Electronics. At Noida, the company's second-largest production plant worldwide, it has already begun producing its premium Galaxy S23 series. Also, Samsung constructed a research and development (R&D) facility in India. The company now employs almost 70,000 people nationwide, including around 10,000 in its R&D facilities.

Samsung has made other investments in India outside the Noida site. Over 3,500 people work at the company's main R&D facility, which is headquartered in Bengaluru, India. Roh stressed the significance of India for Samsung's growth plan, noting that the country is predicted to have 1 billion smartphone users by 2026 and the highest population of GenZ and GenY in the world with 600 million people between the ages of 18 and 35.

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In its ambitions to overtake Apple in the premium market, Samsung's investment in India is also evident. Market research indicates that Apple continued to dominate the premium smartphone industry in 2022 with a 60% share, followed by Samsung with a 21% share. In terms of market share, Apple controlled 18% of the premium class, while Samsung held 22%.

Given the scale of its R&D and design departments in the nation, which allows the firm to manufacture high-quality goods in line with their demands, Roh claimed that Samsung knows Indian customers better than any other company. The company aims to improve the customers' content production experience and introduce the features that enable it, to grow market share in the premium sector.

Also, Samsung works with regional Indian suppliers to provide mobile chargers and parts like mechanics. Roh emphasized that the company's technical engagement with local partners will continue and that it would have been impossible to be competitive without such collaboration. Samsung has been closely collaborating with regional suppliers when it comes to the production of OLED displays. Last but not least, the business has plans to soon launch a self-repair service in India that would let users buy parts like phone screens to restore their phones' broken displays.

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