Samsung to invest Rs 400 crore in Tamil Nadu plant to manufacture 5G, 4G equipment
Photo : ET Now Digital
Several global electronics manufacturers, including the South Korean giant, have joined the central government’s production-linked incentive scheme to produce high-tech products in India. Nokia, Samsung, Ericsson’s partner Jabil, who were onboarded on the PLI bandwagon in October this year, plan to manufacture 5G equipment in India.
The domestic demand for 5G equipment is set to take off with Reliance Jio and Bharti Airtel rolling out 5G network across the country.
Earlier in 2022, Samsung was recognised as “trusted” source by the National Security Council Secretariat (NSCS). Telecom operators need this NSCS accreditation to give contracts to equipment suppliers. The security clearance was made mandatory from June 15 for telecom operators to select equipment suppliers, who are deemed as ‘trusted sources’.
The PLI scheme for electronics has onboarded 42 firms, including 28 micro, small and medium enterprises (MSMEs), who collectively have committed to or invested Rs 4,115 crore. Out 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 from 4% to 7% in different categories.