Samsung Display received approval from the Indian government to get financial backing for its factory in Noida, according to Reuters.
The Uttar Pradesh state government signed off on a financial incentive of 48.25 billion rupees to the South Korean display panel makers Noida factory.
Samsung Display is currently constructing a OLED module factory at Noida. Last month, it sent around 100 staff from South Korea to Noida to wrap up the construction of the factory.
Uttar Pradesh will also provide 7 billion rupees worth of financial benefits and exempt Samsung Display of stamp duty on the transfer of land.
Affiliate Samsung Electronics finished construction of its smartphone factory at Noida in 2018. Samsung Display began constructing its display panel factory earlier this year to supply its components to Samsung Electronics’ factory.
The new OLED module factory will likely go live sometime in the first half of 2021.
The new factory will help Samsung Electronics react to demand faster in India’s smartphone market. The Korean tech giant reclaimed its No.1 spot from Xiaomi in two years in the third quarter of 2020. The rising tension between India and China is also expected to benefit Samsung over its Chinese rivals.
In October, the Indian federal government adopted a production-linked incentive policy scheme for 16 companies including Samsung Electronics and Foxconn.