Samsung Electronics is the only handset manufacturing company among 16 that has surpassed both investment and output targets under the production-linked incentive (PLI) scheme for handsets and components this year —Economics Times
About Scheme
The scheme was launched in August 2020 for 16 companies, but approvals came in October.
The incentives are given upon achieving investment and production targets, not on a pro-rata basis.
Worth mentioning here is that Any big company getting approved under the scheme will have to invest Rs 100 crore to set up the production lines and machinery to avail benefits under the PLI scheme.
Competitors
The other global manufacturers that have applied for the PLI scheme for locally manufacturing telecom equipment are Cisco, Jabil, Flex, Foxconn, Nokia and Ericsson.
Foxconn’s two units, Wistron, Pegatron and Samsung were supposed to invest Rs 250 crore each and produce incremental output of Rs 4,000 crore each in the first year to get a 6% direct incentive as cashbacks.
Comment from Company
“Samsung is looking to have diversified manufacturing given that it has recently won 5G business globally. Jio, however, is its most critical and largest client globally.”
“We also have less dependency on China for supply chain needs, which helped us to keep up manufacturing during the toughest time.” —Reported by ET.
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