Samsung to set up smartphone display plant in India, get tax incentives
Samsung Display, Samsung’s display manufacturing arm, had signed a memorandum of understanding earlier this year to set up a smartphone display plant in India. The country’s leading investment promotion body, India Invest, has mentioned in a letter that the South Korean firm plans to invest up to $705.75 million to set up the facility in Uttar Pradesh, India.
The world’s largest smartphone OLED panel maker expects to create around 1,300 jobs with the new plant. Samsung is planning to begin operations at the upcoming plant in the city of Noida in 2021. A source familiar with the matter said that the South Korean display panel maker would relocate some of the manufacturing done in China to India if plans of the new plant take shape. Samsung also operates its largest smartphone plant in the world in Noida, Uttar Pradesh.
Samsung will get tax and other incentives from the Indian government for setting up the display plant. India Invest, the promotion body, sent the letter to Uttar Pradesh’s government in April. However, Reuters couldn’t confirm if India Invest discussed the letter with the South Korean firm. Samsung could benefit from higher capital incentives on investment over a 20-year period.
Satish Mahana, the industrial minister for the state of Uttar Pradesh, said that incentives were under discussion and that no decision has been taken yet. India is competing with the likes of Indonesia, Thailand, and Vietnam to attract large industries such as smartphone brands under its Make in India drive. Similar to other countries, India is offering tax incentives on capital expenditure. Samsung could also save on import taxes that India plans to levy.
Samsung Display currently has three OLED plants in China, nine plants in South Korea, and one plant in Vietnam. The company has already announced that it is exiting the LCD display business by the end of 2020 to focus on OLED and QLED technologies.Join the Discussion