Samsung shares closed higher in the US Friday ahead of the opening of the world’s largest mobile making factory in India. The South Korean tech giant should now be able to expand its production levels and more easily compete with its competitors, particularly in the Indian market.
Samsung shares ended the Friday US session 2.96% higher at $1,027. However, the stock has been moving broadly lower in recent weeks.
Samsung’s newest mobile making factory
The tech giant’s newest – and largest – mobile manufacturing factory, sits on a 35-acre site in Noida, Uttar Pradesh, just outside New Delhi. This new facility will allow the smartphone maker to churn out more phones for a lower cost, largely due to the huge scale at which it will produce them.
Indeed, some reports suggest that up to 120 million smartphones and other tech devices could leave the factory, in a single year. That’s almost double the 67 million devices the business currently manufactures in the country.
Among Samsung products due to be made at the newest facility are the Samsung Galaxy S9, along with entry-level smartphones, too.
New factory boosts’ Indian PM’s tech plans
While opening and owning the largest mobile manufacturing factory in the world is undoubtedly great PR for Samsung, the move is also welcome news for India’s Prime Minister, Narendra Modi.
Modi’s “Make in India” plan has seen import tariffs on some items rise, including mobile phones made outside of India.
That means that in order for tech firms to take advantage of the huge market for smartphones and other tech on offer in India, shifting the manufacture of those goods into the country could work out well for both parties.
Both India’s PM Modi and South Korean president Moon Jae-in attended the official opening ceremony of Samsung’s latest and largest tech factory, Monday.
“We are aligned with Government policies and will continue to seek their support to achieve our dream of making India a global export hub for mobile phones,” H.C. Hong, Chief Executive Officer, Samsung India, said in a statement.