South Korea-based Samsung will manufacture compressor units for refrigerators in Tamil Nadu by investing over Rs 1,500 crore. A Memorandum of Understanding (MoU) to set up a manufacturing plant has been inked between Samsung and Tamil Nadu government on Tuesday.
The MoU was signed in the presence of Tamil Nadu Chief Minister M K Stalin and Ken Kang, President and CEO, Samsung India.
Samsung had sent out invites for the event but was tight-lipped on the details of the MoU.
However, sources in the government told DH that the South Korean firm will set up a unit to manufacture compressor units for refrigerators in Tamil Nadu at a cost of Rs 1,588 crore. “The investment is for a compressor unit. With Samsung signing an MoU with us for a manufacturing unit, we hope to garner more investments in the sector besides other sectors,” a source said.
Though Samsung has two plants that manufacture a wide range of electronics, the move by it to set up a dedicated unit for manufacturing components for refrigerators is considered significant.
The sources added that the state government has been holding talks with Samsung to expand its facilities and to invest in sunrise sectors like manufacturing of semi-conductors. Tamil Nadu touched base with Samsung asking it to make use of the Product-linked Incentive (PLI) Scheme rolled out by the Centre to manufacture chips in the country.
The southern state, which currently accounts for 20 per cent of national production in electronics and hardware, feels it is placed at an “advantageous position” in attracting investments in the semiconductor space, pointing to the market it offers in the automobile and electronics sector which is heavily dependent on computer chips for production.
Informed sources told DH that the state has also reached out to homegrown conglomerate Tata Group, which had in August 2021 announced its intention to enter the semiconductor sector.
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