Samsung weighs setting up 5G gear production hub in India
NEW DELHI : Samsung Electronics Co. Ltd is evaluating making India a hub for making 5G equipment as it weighs alternatives to China for expanding production, three people aware of the development said. The South Korean conglomerate is considering India alongside Vietnam for its plans.
“The industry, which makes 5G equipment, is currently in China, and due to the situation right now, it is such that further expansion of the company is not possible. There is no choice but to move out of China anyway. Other than Vietnam, India is the top prospect as a replacement for having the factories in China," a top executive from a trade body said on condition of anonymity.
The person added that the plan is still at an early stage and might need time to materialize. A second person in the manufacturing industry said Samsung has been successfully making various consumer electronics products, including smartphones, in India for a long time, which is one reason it considers the country for telecom gear as well. “The scale may not be big, to begin with, but we have a ready market in India, for not only 5G but 4G, and in the future, for higher generation of gear," the person said.
Queries sent to a Samsung spokesperson remained unanswered. Samsung already has agreements to supply 5G equipment to India’s top two carriers, Reliance Jio Infocomm Ltd and Bharti Airtel Ltd, along with Nokia Corp. and Ericsson, which have been their suppliers for long.
“Nokia and Ericsson are already making their network equipment, including radios, in India. They’re expanding capacities as well to handle the demand. It’s only logical that Samsung also follows suit," said Gareth Owen, associate research director at Counterpoint Technology Market Research.
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