Why Samsung Electronics Have Chosen India A Key Destination for Investments

Published  February 24, 2023   0
S Staff

Around 1,397 semiconductor firms have lost their business in 2022, which escalated to 3,420 in 2021

As per reports, the South Korea based global electronics giant Samsung is investing massively in India and has also assured to manufacture its upcoming top-notch foldable smartphone in the country. Samsung wants to turn India into a chief manufacturing base of smartphones and other electronics. 

Earlier, the company has also produced a range of mid to high level phones in India because the country is now emerging into a hotspot for the global smartphone market. Currently, the nation is the world’s second largest market for smartphones and is continuously undertaking efforts to perk-up domestic electronics manufacturing to grab the spot of globe’s No. 1 smartphone market. 

According to the experts, as the US is also undertaking various efforts to shatter China’s dream of leading the global technology and the semiconductor industry it is likely that Samsung Electronics would shift its semiconductor manufacturing units. China accounts for more than 40 percent of the in-house NAND flash memory chip production at Samsung. In China back in 2022, over 5,746 semiconductor firms have canceled their business registrations in the region and around 1,397 semiconductor firms have lost their business in 2022, which escalated to 3,420 in 2021. 

Another major challenge China is facing is the USA's ban of export of key semiconductor technologies and manufacturing equipment in the region. As per a report of Business Korea, as the world's top five semiconductor equipment makers -- Applied Materials (AMAT), Lam Research and KLA of the United States, ASML of the Netherlands, and Tokyo Electron of Japan, joined a US government-led ban on exports of semiconductor equipment to China, production of advanced semiconductors in China is virtually impossible without permission from the United States.

During the COVID year in 2020, Samsung also proclaimed to invest Rs 4,825 cr in India to shift its manufacturing base completely out of China. There is another serious concern; semiconductor technologies are being repeatedly stolen in China and are growing at a rapid scale. For instance, some technical information of ASML is leaked, which has been mentioned in its yearly report. Analysts are also fearing the fact that both Samsung Electronics and SK Hynix may fall prey to technology theft in China.