Samsung to invest ₹1,000 cr in Tamil Nadu plant after labour unrest; eyes smartphone shift from Vietnam
Chennai: Samsung Electronics will invest ₹1,000 crore in its manufacturing unit near Chennai, Tamil Nadu’s industries minister TRB Rajaa said on Friday, weeks after the facility was rocked by worker protests, media reports said.
The announcement, made in a post on X, comes amid lingering tensions between the company and its workforce following allegations of union-busting and employee suspensions, reported Reuters.
The plant, which employs over 2,000 workers, was the site of a five-week strike in September demanding wage hikes and union recognition.
Although Samsung later agreed to address certain demands, disputes between the union and the management persist.
The company, however, has denied any anti-union activities, maintaining that it complies with Indian labour laws.
Expansion expected to create new jobs
Minister Rajaa described the latest investment as a sign of Samsung’s confidence in the state's labour force.
The expansion is projected to generate around 100 new jobs and deepen the company's commitment to Tamil Nadu, where it manufactures refrigerators, televisions, and washing machines.
The plant contributed nearly 20% to Samsung’s $12 billion revenue in India during 2022–23.
Shift in production strategy amid global tariff shifts
The investment also aligns with Samsung’s broader efforts to rebalance its global manufacturing footprint.
The company is reportedly evaluating a plan to move part of its smartphone production from Vietnam to India, amid uncertainty over US tariff policies.
Although Washington has temporarily suspended elevated tariffs on Vietnamese goods—bringing them on par with India’s 26% rate—Samsung is looking to diversify away from its heavy reliance on Vietnam.
Despite having the capacity to manufacture up to 70 million smartphones annually in India, Samsung’s current output is around 43–45 million units.
In FY25, its smartphone exports from India totalled ₹30,000 crore ($3.5 billion). Industry sources estimate that up to $10 billion worth of production could shift from Vietnam to India as early as this quarter.
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