In a significant revelation, Samsung's massive research and development operations in India have emerged as the company's most influential engineering hub outside its South Korean headquarters and the United States. Jong Bum (J.B.) Park, President and CEO of Samsung Southwest Asia, stated in an exclusive interview that the Indian team is now at the forefront of developing core technologies for the tech giant's global products.
India: The Engineering Powerhouse for Flagship Devices
The entire camera unit and its software for Samsung's flagship smartphones are now developed and engineered entirely in India. This pivotal role extends beyond cameras. Park confirmed that the company's entire Galaxy A series smartphone portfolio is also developed at the Bengaluru R&D centre. With a formidable team of 10,000 engineers, the India operations account for the core development process of smartphones, which contributed 38% to Samsung's global revenue of $219 billion in FY24.
The focus is now expanding into artificial intelligence. "As we delve deeper into AI, a lot of our engineering for our three global AI platforms is being done in India, including our work on developing on-device AI features," Park explained. This strategic move positions India not just as a market, but as a critical global innovation nexus for Samsung.
Doubling Down on Manufacturing and Local Value Addition
Marking 30 years in India this month, Samsung is embarking on a new phase of deepening its local footprint. The company is now targeting the local manufacturing of high-value components, starting with displays. Currently, key components like displays and chips are imported from Korea, Japan, Taiwan, Vietnam, and Malaysia.
"The two biggest value additions in our products are the chip and the display," Park said. "Now, we have begun localizing the manufacturing process for our displays, which will feature in our refrigerators and then on to other devices as well." This aligns with the Indian government's push for higher-value electronics manufacturing. Park emphasized that even core components like compressors for air conditioners are already being made in Samsung's Indian factories.
Data from Tofler shows Samsung India earned ₹1.14 trillion ($12.7 billion) in FY25, accounting for 6% of global revenue—nearly double the contribution of most tech firms' India operations to their global income.
Navigating a Competitive Smartphone Market
The growing clout of Samsung's India R&D comes at a crucial time. The company's market share in India's smartphone segment has faced pressure, dropping to third place behind Vivo and Oppo with a 12.6% share as of September this year, according to IDC. This is a shift from its leadership position lost to Xiaomi in December 2017.
Park admitted the market share challenge is a concern. "Losing ground from being the absolute number one means that if we don't focus on retaining the top spot, we may soon end up sliding down to number five or six, or worse," he stated. The strategy to counter this involves creating a complete ecosystem of connected devices. Starting next year, Samsung plans to make 100% of its home appliances Wi-Fi-connected to enhance user integration into its ecosystem.
Industry analysts note Samsung's resilience. "Samsung India's sustained success stems from its enduring brand salience and the widest horizontal portfolio across mobiles, TVs, and appliances," said Prabhu Ram of CyberMedia Research. He credited India-specific R&D and large-scale local manufacturing for enabling quick responses to consumer needs. However, he also pointed out a potential long-term concern: "Samsung's relative weakness lies in its conservative innovation posture, prioritizing incremental improvements over bolder, category-defining innovation."
Despite fierce competition from Apple, Google, and Chinese brands, Samsung's three-decade journey in India is now defined by its evolution from a sales outpost to a global engineering and manufacturing leader, shaping the future of its most popular products.
