Samsung Electronics Co yesterday opened the world’s largest mobile phone manufacturing facility on the outskirts of New Delhi as smartphone demand in India surges.
The factory was to be inaugurated by Indian Prime Minister Narendra Modi and South Korean President Moon Jae-in at 5pm local time. Both leaders were visiting the facility adjoining the capital, the Indian Ministry of External Affairs said.
“The opportunity is just massive,” said Faisal Kawoosa, who heads new initiatives at researcher CMR Pvt. “Such a large facility will help Samsung cater to the huge demand in a country of 1.3 billion people where there are only 425 million smartphone users.”
Since taking power in 2014, Modi has pushed his Make in India initiative, which encourages companies to set up plants in the country as the nation attempts to bolster domestic manufacturing. India attracted the highest ever foreign direct investment over the past year with inflows totaling US$62 billion.
India’s smartphone market grew 14 percent with total shipments of 124 million units last year, the fastest pace of growth among the top 20 markets, International Data Corp said.
Demand for new phones is surging in India, helped in part by billionaire Mukesh Ambani offering US$23 4G feature phones, free voice services and cheap data plans.
Chinese smartphone maker Xiaomi Corp (小米) in April said that it would set up three more factories in India.
The new Samsung factory is to have the capacity to fabricate 120 million smartphones per year and make everything from low-end smartphones that cost less than US$100 to the company’s flagship Galaxy S9 model, Samsung said.
Indians favor low-end smartphones priced at US$250 or less, given the country’s low average annual income, Bloomberg Intelligence said.
That is one reason Apple Inc has struggled to gain market share in India, with most iPhone models priced higher than US$500, Bloomberg Intelligence said in a report earlier this month.
India last year overtook the US to become the world’s second-largest smartphone market after China.
There will be 780 million connected smartphones in 2021, compared with 359 million in 2016, a study by Cisco Systems said.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
INVEST IN TAIWAN: A metal components casting firm and the world’s largest maker of aluminum bicycle rims also obtained approvals to join the program Solar Applied Materials Technology Co (SOLAR, 光洋應用材料), a part of Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) “green supply chain,” has pledged to invest NT$1 billion (US$34.1 million) to build a new plant at the Tainan Technology Industrial Park (台南科技工業區), the Ministry of Economic Affairs said yesterday. SOLAR has been collaborating with TSMC to extract precious metals from waste and reuse them as “sputtering target” material in high-end semiconductor manufacturing, a TSMC press release issued in May said. Established in 1978, SOLAR also offers key materials and integrated services to customers in the optoelectronics, information and communications technology, petrochemicals and consumer electronics industries,
Swancor Renewable Energy Co (上緯新能源) yesterday announced plans for a 4.4 gigawatt (GW) offshore wind project off Miaoli County as part of its commitment toward Taiwan’s energy transformation, the company said in a statement. The “Formosa 4” project includes three deep-water wind farms 18km to 20km off the coast, Swancor Renewable CEO Lucas Lin (林雍堯) said, adding that planning for the project began last year. A proposal for Formosa 4 was this week submitted to the Environmental Protection Agency (EPA), the company said. Swancor Renewable jointly developed the Formosa 1 project, a 128 megawatt (MW) wind farm about 4km off Miaoli and the