Samsung will use the money it earns from the new manufacturing unit to expand its business in the semiconductor sector in the country, with plans to open up manufacturing capacity at its new factories in India.
The firm, which is currently the world’s largest manufacturer of electronic components, plans to make the new semiconductor components at its main factory in Mahidol in the northern Indian state of Tamil Nadu.
The company has already begun manufacturing the components at the new facility.
In a statement, Samsung said it will use 50% of the proceeds from the joint venture with Mahidos company, which includes the production of its components in India, to fund the expansion.
Samsung is also planning to spend up to $1.3 billion in the company’s new semiconductors manufacturing facilities in India and to invest $100 million to expand existing plants.
The announcement came a day after Apple said it would use $1 billion in funding from the US government to expand production at its supply chain facilities in the US.
The move came after the companies announced plans to invest in new semicore production facilities in Taiwan and Mexico.
Apple has also said it plans to create an “all-new” semiconductor manufacturing facility in Mexico.