Samsung To Manufacture 5G, 4G Equipment In Tamil Nadu Plant At Rs. 400 Crore Will Be Invested

Samsung To Manufacture 5G, 4G Equipment In Tamil Nadu Plant At Rs. 400 Crore Will Be Invested

November 27, 2022: Earlier this year, Samsung tied up with global electronics makers such as Nokia and Jabil to build 4G and 5G equipment in India under the government’s PLI research scheme.

Samsung has bagged deals from both the Reliance Jio and Bharti Airtel brands to expand its 4G and 5G radio equipment manufacturing capacity at its Tamil Nadu state facility with an investment of Rs. 400 crores has been planned to be invested.

Now, Several global electronics manufacturers, including the South Korean giant, have joined the central government’s production-linked incentive scheme to manufacture hi-tech products in India.

Nokia, Samsung, Ericsson partner Jabil, which joined the PLI bandwagon in October this year, plans to manufacture 5G equipment in India.

Domestic demand for 5G equipment is set to kick off with the launch of 5G networks across the country by Reliance Jio and Bharti Airtel.

Last year, due to Samsung’s lack of opportunities to supply equipment, the government’s INR 12,195 crore did not participate in the PLI scheme.

Last year, Samsung only had Jio as a client to which it supplied equipment with 4G, and the latter did not launch a 5G network until then.

Earlier in 2022, Samsung was recognized as a “reliable” source by the National Security Council Secretariat (NSCS).

Telecom operators require this NSCS accreditation to award contracts to equipment suppliers. Security clearance was made mandatory from June 15 for telecom operators to select equipment suppliers, who are considered as ‘reliable sources.

The PLI scheme for electronics involves 42 firms, including 28 Micro, Small, and Medium Enterprises (MSMEs), who have collectively contributed Rs. 4,115 crores has been invested.

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 ranging from 4% to 7% across various categories.

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