Samsung Mobiles inaugurated world’s largest mobile phone factory in Noida Details

Samsung Mobiles inaugurated world’s largest mobile phone factory in Noida (Uttar Pradesh) Details, Highlights

South Korean technology giant Samsung Mobiles has inaugurated the world’s largest mobile manufacturing unit in Noida, Uttar Pradesh.

Samsung mobile manufacturing unit was jointly inaugurated by Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in.

Samsung Electronics facility (Sector 81) in Noida will help the company to double its current manufacturing capacity for mobile phones in Noida from 6.8 crore units a year to 12 crore units a year (10 million phones in a month), in a phase-wise expansion that will be completed by 2020.

Significance

The manufacturing facility will allow Samsung to make phones at a lower cost due to its scale when other phone making hubs such as China are getting more expensive. 70% of phones manufactured in this facility will be earmarked for the domestic market in Indian and the remaining 30% will be exported to Middle-Eastern and African nations.

The new Samsung mobile manufacturing facility has been built at an investment of Rs. 4,915 crore on a 35-acre land. It will generate 2,000 direct jobs.

Currently, Samsung provides 70,000 direct and indirect jobs in India, 5,000 of them are employed in Noida. Production in this new facility will range from low-end smartphones priced below $100 to the company’s flagship models.

Background

India is the world’s second-largest smartphone market after China (after it overtook the US). As per the study by Cisco Systems, there will be 780 million connected smartphones in 2021, compared with 359 million in 2016.