Samsung Pushes for PLI Extension to Support India Manufacturing Strategy

In Focus

• Samsung India PLI news centers on the company’s request for extended smartphone incentives
• Samsung applies for component PLI to expand Samsung display manufacturing India
• India smartphone exports slow after PLI benefits expire
• Samsung signals conditional openness to sourcing semiconductors locally

Samsung Electronics has approached the Indian government seeking an extension under the smartphone production-linked incentive framework, signaling renewed focus on domestic manufacturing and exports, according to Business Standard.

The development comes as Samsung evaluates expanded component manufacturing and export competitiveness following the expiry of earlier incentives. The Samsung India PLI news underscores how policy continuity remains central to India’s electronics manufacturing strategy as global firms reassess supply chains and cost structures.

Samsung Pushes for Incentive Continuity and Capacity Growth

Samsung has requested additional time under the smartphone PLI framework, which ended earlier in 2025, citing its role in scaling exports and domestic output. Under the scheme, Samsung’s India operations delivered significant export growth, with overseas shipments accounting for nearly 42% of its India revenue in FY25. Recently, Samsung has also started its manufacturing unit in Noida for making laptops, expanding its production portfolio in India.

The company also indicated it is evaluating fresh investment commitments if policy clarity improves under a potential Samsung India PLI scheme extension, reinforcing India’s role as a long-term manufacturing base rather than a short-term assembly hub.

“If there is demand, capacity can be added in India,” said JB Park, President and CEO, Samsung Southwest Asia, as reported by Business Standard.

Key Manufacturing and Policy Signals

• PLI incentives drove export-led revenue growth in FY25
• Samsung links future capacity expansion to sustained demand
• Policy stability remains critical for manufacturing economics

Display Manufacturing Signals Move Up the Value Chain

Beyond smartphones, Samsung has applied under India’s electronics component incentive framework to locally manufacture mobile phone displays. This marks a shift toward higher-value manufacturing, positioning Samsung to expand display manufacturing as a strategic priority. Earlier this year, Samsung was considering shifting its smartphone production to India due to US tariffs.

Display panels remain one of the most import-dependent components in smartphone production, and localizing this capability supports India’s goal of deeper supply chain integration. The move strengthens Samsung mobile component manufacturing while aligning with government efforts to reduce reliance on overseas component suppliers through targeted incentives.

“We have applied under the component PLI scheme,” Park stated in the interview with Business Standard.

Exports, Chips, and Competitive Pressures

Samsung acknowledged that export volumes declined after smartphone PLI benefits expired, reflecting cost challenges relative to Vietnam and China. Despite this, the company confirmed it has no plans to shift existing capacity from Vietnam to India. Samsung is creating a network of AI research facilities across major technology hubs.

Instead, India remains positioned for incremental growth tied to demand and incentives. On semiconductors, Samsung said it is open to sourcing locally if suppliers meet cost and quality thresholds, adding relevance to Samsung display manufacturing in India discussions within the broader electronics ecosystem.

“We are open to sourcing chips from India if they are competitive,” Park said, according to Business Standard.

Impact on India’s Electronics Manufacturing

The Samsung India PLI news reflects the next phase of India’s electronics strategy, where policy continuity, component localization, and export competitiveness intersect. Samsung’s engagement signals that large manufacturers are willing to deepen investments beyond assembly, provided incentive structures remain predictable.

The case highlights how component-focused incentives could determine whether India evolves into a full-scale electronics manufacturing hub or remains primarily an assembly destination in global supply chains.