At its site in Tamil Nadu, Samsung aims to commit 400 crores to begin producing 5G and 4G radio equipment, a company representative confirmed ET.
Samsung is the brand new international gear manufacturer to join the country's telecom equipment production-linked incentive (PLI) program. This will be its first investment in the country's telecom gear industry, where it will partner with Nokia and Jabil (Ericsson) in producing 5G devices.
"Samsung has proposed an investment of Rs 400 crore and plans to start production of 5G/4G equipment at Kanchipuram," the official said.
Reliance Jio Infocomm and Bharti Airtel are both launching 5G networks, driving increasing demand for 5G equipment. The South Korean company has agreements with both companies to provide 5G radios for certain regions.
After skipping the telecom equipment PLI scheme last year due to the absence of opportunities in the equipment supply sector, Samsung decided to participate in the $12,195 crore program this year. Jio was its sole 4G client at the time, and 5G implementations had not yet begun in 2017. Meanwhile, Samsung has secured agreements from both of the main carriers as they launch their 5G networks. Samsung was recognized as a "trusted" supplier earlier this year by the National Security Council Secretariat (NSCS). To be chosen by telecom carriers to place equipment on their network, you must receive such clearance.
42 companies, along with 28 micro, small, and medium-sized enterprises (MSMEs), have joined the PLI plan for electronics and have pledged or invested a total of Rs 4,115 crore. 17 of these industries have requested an extra 1% reward under the design-led manufacturing eligibility requirements. The PLI program offers various kinds of tax and other benefits ranging from 4% to 7%.
