Keypoints:
- South Korean consumer electronics major Samsung to invest nearly Rs. 5000 crores in a smartphone display manufacturing facility in Noida.
- The export-oriented unit (EOU) is expected to be ready by January-February 2021 and attain commercial production by April 2021.
In a big move, South Korean electronics giant Samsung has confirmed that they will set up a new smartphone display plant in Noida, Uttar Pradesh.
And the most interesting aspect: They will close down a similar plant in China, and move to India for manufacturing smartphone displays.
Samsung has signed a MoU with the Uttar Pradesh Govt to set up a new smartphone display plant in Noida.
For the same, Samsung will invest $705 million or Rs 5400 crore, and create a state of the art production house for smartphone displays.
Due to this initiative by Samsung, more than 1300 new jobs will be created in and around Noida by 2020-end.
The factory for smartphone display will be made operational by 2021.
The letter by Invest India to UP Govt said, “We are submitting our recommendations to incentivise setup of HiTech industries in Uttar Pradesh and facilitate a key investor – Samsung Display in relocating its operations to India,”
Tax benefits, along with incentives announced by both Centre and UP Govt to encourage Make in India movement, and local manufacturing seems to be the main motivating factor for Samsung.
Deccan Herald reported: “Samsung could benefit from higher capital incentives on the overall investment over a 20-year-period, including reimbursement of spending on IT infrastructure.”
However, as per sources, the final call on incentives and tax benefit from UP Govt’s end is yet to be taken.
Satish Mahana, Uttar Pradesh’s minister for industrial development has revealed that Govt is considering the request for tax rebates by Samsung, and the final decision will be taken soon.
Recently, Apple decided to move their assembling of iPhone SE to India, to get 20% rebate on import duty, which will help them to reduce the cost of iPhone SE and other models in India.
Earlier, Samsung India Electronics, the Indian unit of the electronics major, had transferred a land parcel of 65,000 square metres apart from granting a loan of Rs 3,500 crore to Samsung Display.
Samsung Display, Noida was incorporated for the business of manufacturing, assembling, processing and sales of displays (including parts, components and accessories) for all types and sizes of electronic devices.
The minister said the state government was in touch with all the other companies and investors who had proposed to invest in UP in different sectors.
