Uttar Pradesh, one of India’s largest states, confirmed that it will provide South Korea’s Samsung Electronics with financial incentives to build a display factory in the region, which is expected to cost approximately US$655 million.
Uttar Pradesh stated in a statement to the media that the company is moving its factories from China to India. People think this is a move that will help promote the “Made in India” program, which aims to build India as a manufacturing center.
Samsung will receive 7 billion rupees in financial gains from the establishment of a display factory. Most importantly, the state government also confirmed that the company will receive tax exemption for the factory land transfer.
The device is expected to start operation next year, but the exact timetable is unclear. Once the factory starts operating, it is expected to create 510 direct jobs. It is worth noting that Samsung already has the world’s largest mobile phone manufacturer in Uttar Pradesh, India.
A few months ago, the Indian government approved about 6.5 billion US dollars of fiscal incentives in 16 countries to increase domestic production of smart phones. The list of companies that will benefit from this includes Samsung and Apple suppliers such as Foxconn and Wistron.
Now, many companies hope that India will become a potential substitute for Chinese manufacturing. In addition to Samsung, several other companies have also transferred production to India, including Apple.
Apple is currently producing several of its products in India and is expected to continue to expand in the coming months.