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Samsung will invest Rs 400 billion at a factory in Tamil Nadu to produce 5G and 4G equipment.

Following an agreements with Reliance Jio and Bharti Airtel, Samsung plans to invest Rs 400 crore in its Tamil Nadu facility to expand its capacity to produce 4G and 5G radio equipment.


In order to create high-tech goods in India, a number of international electronics manufacturers, including the South Korean behemoth, have enrolled in the program’s production-linked incentive. In India, Nokia, Samsung, and Ericsson’s partner Jabil want to produce 5G equipment after joining the PLI in October of this year.


With the nationwide rollout of 5G networks by Reliance Jio and Bharti Airtel, the domestic market for 5G equipment is about to explode.


Due to a paucity of prospects to supply equipment, Samsung decided not to take part in the government’s Rs 12,195 crore PLI scheme last year. Jio was the only customer of Samsung last year who needed 4G-capable equipment, and Jio had not yet begun rolling out its 5G network.


Earlier in 2022, the National Security Council Secretariat acknowledged Samsung as a ‘reliable’ source (NSCS). This NSCS accreditation is required for telecom operators to award contracts to equipment vendors. From June 15, telecom operators must have a security clearance in order to choose equipment suppliers they consider to be ‘trusted sources.’


42 companies, including 28 micro, small, and medium-sized enterprises (MSMEs), have joined the PLI plan for electronics and have pledged or invested a total of Rs 4,115 crore. 17 of these manufacturers have requested an extra 1% reward under the design-led manufacturing criteria. The PLI programme offers various kinds of tax and other benefits ranging from 4% to 7%.


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