Samsung plans to invest Rs 400 crore in its Tamil Nadu facility to build capacity to manufacture 4G and 5G radio equipment, having bagged deals from both Reliance Jio and Bharti Airtel.
Several global electronics manufacturers, including the South Korean giant, have joined the central government’s production-linked incentive scheme to produce high-tech products in India. Nokia, Samsung, Ericsson’s partner Jabil, who were onboarded on the PLI bandwagon in October this year, plan to manufacture 5G equipment in India.
The domestic demand for 5G equipment is set to take off with Reliance Jio and Bharti Airtel rolling out 5G network across the country.
Samsung had not participated in the government’s Rs 12,195-crore PLI scheme last year owing to a lack of opportunities for supplying equipment. Last year, Samsung only had Jio as a client to whom it supplied equipment with 4G, and the latter had not rolled out the 5G network till then.
Earlier in 2022, Samsung was recognised as “trusted” source by the National Security Council Secretariat (NSCS). Telecom operators need this NSCS accreditation to give contracts to equipment suppliers. The security clearance was made mandatory from June 15 for telecom operators to select equipment suppliers, who are deemed as ‘trusted sources’.
The PLI scheme for electronics has onboarded 42 firms, including 28 micro, small and medium enterprises (MSMEs), who collectively have committed to or invested Rs 4,115 crore. Out of these manufacturers, 17 have applied for an additional incentive of 1% under the design-led manufacturing criteria. The PLI scheme offers tax and other incentives from 4% to 7% in different categories.
