Samsung Electronics Co. is setting its sights on India to build a half-billion dollar display facility as part of the company's expansion in the country.
The company announced its $500 million expansion in a filing with India's regulator earlier this month. The new facility will be constructed at the outskirts of the capital.
Samsung Electronics, which was once the most dominant smartphone brand in India, disclosed that the facility would manufacture smartphone screens including a broad array of other electronic gadgets.
The South Korean company said it has allotted some land area from its existing location in Noida for the new facility.
A $700 million plant was unveiled in Noida in 2018, which Samsung claims is the biggest cellular phone manufacturing facility in the world that time.
Samsung expects that its New Delhi manufacturing plant will help boost the company's capability in producing mobile phone parts domestically, and access a host of tax privileges that the city will offer.
These tax benefits would be a welcome relief to Samsung as it squares of with off Xiaomi, China's smartphone vendor who toppled Samsung from the top spot in India's smartphone business.
In recent months, Samsung has also lost a huge share of the handset market to Chinese company, Realme, which overtook the South Korean giant in the three months ending December 2019, according to latest market figures.
Samsung is currently the second biggest smartphone company in India, which is the world's second biggest market with almost half billion smartphone users.
Meanwhile, Samsung Electronics has rallied on a robust earnings projection, but its growing influence on the local stock trading will serve as a barrier for the company to rise further as a result of a stock index market cap, analysts said Sunday.
According to Korea Exchange (KRX), Samsung has taken up over 30 percent of the market cap of the KOSPI 200 since December 6 of 2019.
In terms of market value, the KOSPI 200 is the basket of the top 200 blue chips stocks. Shares of Samsung Electronics have been on a roll after the tech giant reported a surprising market-beating score in the fourth quarter.
Samsung Electronics settled at an all-time peak of 61,300 won (US$52.89) on Friday, taking up 33.17 percent of the market cap of the index.
Samsung's clout in the index may put a brake on the company's aggressive ascent as South Korea has imposed a new ceiling system for listed companies, market watchers disclosed.
