To begin producing 5G and 4G radio equipment at its facilities in Tamil Nadu, Samsung expects to invest Rs 400 crore.
Samsung is the newest international gear manufacturer to join the government’s telecom equipment production-linked incentive (PLI) program. This will be Samsung’s first investment in telecom gear manufacturing in India, joining international rivals Nokia and Jabil (Ericsson) in producing 5G equipment locally.
As both Reliance Jio Infocomm and Bharti Airtel roll out 5G networks, the demand for 5G equipment has increased. The South Korean conglomerate has agreements with Jio and Airtel to provide 5G radios for specific circles.
After passing last year, Samsung decided to participate in the Rs 12,195 crore PLI scheme for telecom equipment due to a dearth of chances in the equipment supply sector. Jio was its sole 4G customer at the time, and 5G rollouts had not yet begun in 2017. However, Samsung has secured deals from both of the main carriers as they launch their 5G networks.
Samsung was recognized as a “reliable” source 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.
A rule requiring operators only to buy equipment from reliable suppliers went into force on June 15 of last year, and it includes the requirement for a security clearance.
On February 24 of last year, the Department of Telecommunications (DoT) announced the PLI scheme for the manufacturing of telecom equipment, with an investment of Rs 12,195 crore split over five years.
42 businesses, including 28 micro, small, and medium-sized enterprises (MSMEs), have been chosen for the program, and they have pledged a combined Rs 4,115 crore in investments. 17 of them have submitted applications for an extra 1% bonus under the design-led manufacturing criteria.