LUCKNOW/NOIDA: The Uttar Pradesh government has given special incentives to South Korean electronic giant Samsung to start production at its Rs 4,825 crore phone display manufacturing unit in Noida. The UP cabinet cleared a proposal to this effect under the UP Electronics Manufacturing Policy-2017.
Samsung Display Noida Private Limited, which is a few months away from starting production in its phone display manufacturing unit in Noida, is the first in India and only the third in the world which had OLED technology assembly facilities. This is also the first major project which moved out of China to India during the Covid-19 pandemic.
“Initially, the company was investing just Rs 1,500 crore in the unit. Its construction started towards the end of 2019. However, around March, the company scaled up its investment to Rs 4,825 crore. The basic manufacturing of OLED screens used for mobiles is done in Korea but the assembly is done in China and Vietnam. Samsung has shifted its machinery from China to India and is slated to start production by April 2021,” said Alok Kumar, additional chief secretary (IT and Electronics).
In 2018, Samsung set up the world’s largest mobile phone manufacturing unit in Noida’s sector 81. Under the recently launched Powering Digital India campaign, Samsung wanted to initiate new manufacturing facilities in the country. Having set up the world’s largest mobile factory in sector 81 of Noida, the company was looking to expand operations within the 35-acre facility. The company is planning to dedicate a large portion of the entire facility for producing mobile screens.
Officials of the South Korean company during their discussions with senior officials of the UP government revealed that the display production plant in Noida will gradually be scaled up to meet the global demands for mobile screens and the entire facility is poised to shape up as the global manufacturing hub for the company.
A government spokesperson said that during the previous financial year, Samsung, with US $ 2.7 billion export, was the largest exporter of Uttar Pradesh. “It has set an export target of US $ 50 billion over the next five years. Under the UP Electronics Manufacturing Policy 2017, Samsung will get exemption on stamp duty in land transfer. The state government will be making a financial provision of Rs 250 crore for this project during the next five years,” he said.
The official added that the company will also receive financial incentives of Rs 460 crore under the Centre’s ‘Scheme for Promotion of Manufacturing Electronic Components and Semiconductors’. More than 70% of the total display products used in TVs, mobile phones, tablets, watches etc across the world, the official added, are manufactured by Samsung in South Korea, Vietnam and China.
“The project will provide UP with a global identity as an export hub and will help the state in getting more foreign direct investment. Samsung’s unit is likely to generate direct employment of 510 persons and will give indirect employment to hundreds more,” said the official.