Samsung is considering the possibility of manufacturing telecom gear in India due to growing geopolitical risk in China. The company is evaluating the option and may wait for more orders, both domestically and internationally, before making a decision.
Manufacturers across various industries are diversifying their supply chains away from China due to rising geopolitical tensions and uncertainties. Samsung, a major player in the telecom industry, is apparently exploring the opportunity to manufacture telecommunication equipment in India.
This move would not only help Samsung reduce its reliance on China but also take advantage of India’s growing demand for telecom gear. India is expected to roll out 4G networks across the country and eventually transition to 5G technology. This presents a significant market opportunity for companies manufacturing telecom equipment.
However, Samsung would require a substantial number of orders, both from India and overseas, to justify setting up manufacturing facilities in India. Without a steady stream of orders, it may not be financially viable for the company.
Manufacturing telecom gear in India has its challenges, including infrastructure limitations and the need for skilled labor. The Indian government has been taking steps to improve the ease of doing business and attract foreign investment. If Samsung decides to proceed with manufacturing in India, it would also support the government’s “Make in India” initiative, which aims to boost domestic manufacturing.
While Samsung is still in the evaluation phase, this potential move could have significant implications for the company’s supply chain and its presence in the Indian market. The diversification away from China would not only mitigate geopolitical risks but also strengthen Samsung’s position in the growing telecom market in India and beyond.