Samsung is no longer just assembling smartphones in India; it is building the high-tech heart of the device. In a significant escalation of its “Make in India” strategy, the South Korean tech giant has applied for government incentives under the Production-Linked Incentive (PLI) scheme to expand display assembly at its massive Noida facility.1
This move signals a transition from “simple assembly” to “high-value component manufacturing,” effectively insulating Samsung’s supply chain from global shocks while deepening its roots in the world’s second-largest smartphone market.
Analysis: Why Localizing Displays is a Masterstroke
The display is the most expensive component of a smartphone, often accounting for 25% to 35% of the total bill of materials (BoM). By localizing this production, Samsung achieves three critical objectives:
- Cost Efficiency & Tariff Shielding: Importing finished display panels attracts high duties. Assembling them locally in Noida allows Samsung to benefit from lower component tariffs and the 4-6% cash-back incentives offered by the PLI scheme.
- Logistical Speed: A local display line reduces the “lead time” between a new phone design and its market launch.2 Instead of waiting for shipments from Vietnam or Korea, the Noida plant can feed its assembly lines in real-time.
- The “India for Global” Export Engine: In FY25, Samsung India’s revenue crossed $11 billion (₹1.11 lakh crore), with a staggering 42% coming from exports.3 The Noida plant is already a global export hub for flagship devices; adding display assembly makes these exports even more cost-competitive.4+1
The Vietnam Factor: Expansion, Not Relocation
A common misconception is that India is “replacing” Vietnam. Samsung SWA President JB Park has been clear: Vietnam remains the company’s primary global manufacturing base.5 Instead of a shift, we are seeing strategic redundancy. India is becoming a “mirror hub” that provides Samsung with geographic insurance against geopolitical tensions or supply chain bottlenecks. While Vietnam handles the bulk of global volume, India is being groomed to handle the massive domestic surge and serve as a secondary export pillar.
Key Financial Insight: For the first time, Samsung India’s revenue surpassed the ₹1 trillion mark in FY25.6 While smartphones currently drive 70% of this revenue, the company is aggressively pivoting toward a 50-50 split between phones and non-smartphone categories (like AI-powered home appliances and laptops) over the next decade.7+1
The Next Frontier: Sourcing “Made in India” Chips
Perhaps the most ambitious part of Samsung’s new roadmap is the openness to source semiconductor chips from Indian suppliers.8 As India’s Semiconductor Mission (ISM) gains steam—with giants like Tata and Micron setting up units—Samsung is positioning itself as a primary customer.
However, there is a caveat: the chips must meet global standards for quality and pricing.9 This “open-door policy” provides a massive incentive for the nascent Indian chip ecosystem to scale up to global benchmarks.
Quick Look: Samsung India’s FY25 Performance
| Metric | Figure | Significance |
| Total Revenue | ~$11 Billion (₹1.11 Lakh Cr) | First time crossing ₹1 trillion mark. |
| Export Share | 42% | Highlights India as a global manufacturing hub. |
| Smartphone Revenue | ~70% | Dominant, but company targeting 50% non-phone mix by 2035. |
| Noida Factory Status | Largest in the World | Single-roof facility with 120M unit capacity. |