Samsung to expand its Tamil Nadu plant with Rs 1,000 crore

The plant near Chennai has been in the spotlight in recent months after workers staged a sit-in over employee suspensions in February — the second major labour dispute there in under six months.

Chennai: South Korean electronics major Samsung will invest Rs 1,000 crore to expand its manufacturing unit in Sunguvarchatiram near here, notwithstanding the multiple strikes by employees against the management over a slew of issues.

In what is seen as Samsung’s show of faith in the investment climate and skilled workforce in the state, the fresh investment will bring in an additional 100 jobs.

“Samsung will make an additional investment of Rs 1000 crore in its existing facility in Sriperumbudur, creating 100 more jobs, reinforcing their faith in the labour force of Tamil Nadu,” Industries Minister T R B Raaja told the Assembly on Friday.

Sources in Samsung India confirmed the development to DH and said a sizable portion of the fresh investment will go into ramping up headcount at the factory which manufactures home appliances. “The remaining amount will be utilised to expand the factory,” a source said.

The Tamil Nadu government said Samsung pledging an additional Rs 1,000 crore investment despite trouble in the plant which began in September 2024 shows the company’s trust in the state government, which brokered peace between the protesting employees and the management.

A source said the fresh investment is significant since it comes close on the heels of several companies, including Samsung, planning to shift a significant portion of their production of electronics from Vietnam to India amid high tariffs imposed by the US.