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Samsung to debut mobile manufacturing unit in Pakistan

Samsung has identified a number of companies to which it may grant a license to build a cellphone assembly plant in Pakistan.

A number of multinational smartphone manufacturers, including Realme, Tecno, Oppo, and others have recently expressed interest in developing local assembly facilities in Pakistan. Samsung has been in discussions with multiple investors about establishing a mobile manufacturing facility in the country. According to reports, the South Korean tech powerhouse is close to finishing its plan, and one of the shortlisted companies is poised to acquire the license to build the manufacturing plant. But because only one company will be considered to award the license for cell phone production after the shortlisting of several companies, no definitive agreement has been inked yet by Samsung.

Up to this point, three investors have expressed interest in participating in this initiative. One of these investors is from South Korea, which is already establishing an assembly plant in Pakistan under the Automobile Development Policy 2016-2021, but the identities of the other two investors have yet to be revealed.

Market insiders assume that Samsung opting to strike a partnership with one of the Korean companies operating in Pakistan because it already has a connection with them.

 Samsung develops a diverse range of consumer and industrial electronics, including appliances, semiconductors, digital media devices, integrated systems, memory chips, and many more.

Last year, when then-Minister of Industries and Productions Hammad Azhar declared on Twitter after meeting with the Managing Director and CEO of Samsung Pakistan, that the smartphone production in Pakistan is increasing due to Device Identification, Registration, and Blocking System (DIRBS) and Mobile [Device Manufacturing] Policy launch, the news of the company establishing mobile assembly plants in Pakistan broke.

Both launches were well received by Samsung officials, who are now seriously contemplating establishing a smartphone assembly unit in Pakistan, he wrote. The Economic Coordination Committee (ECC) approved Pakistan’s first Mobile Device Manufacturing Policy (MDMP) in concept earlier in 2020.

MDMP has piqued the interest of foreign companies in setting up cellphone manufacturing operations in Pakistan. The program was designed to encourage the production of products under the ‘Make in Pakistan’ flag while discouraging imports.

 Considering Samsung’s arrival, it’s merely a sign of how much money will be put in the ever-growing smartphone market so that other global corporations can obtain a market share too.

In the first two months of this year, Pakistan produced 1.21 million cell phones. These phones were assembled in Pakistan’s 33 mobile device production plants. This showed a huge increase in comparison to the last two years, as the country manufactured 2.1 million smartphones in the whole of 2020, and 119,639 in 2019, as per PTA (Pakistan Telecommunications Authority)

Automatic robot arm with optical sensor working in mobile phone factory

As enormous as the announcement that Samsung is establishing a mobile manufacturing facility in Pakistan, we hope that other foreign tech giants will hop on the board as well, and create more job opportunities, improve the production of electronic equipment, and establish smartphone research and development facilities in Pakistan.

Reporter: Zarrish

Written by: Mishaal Muzaffar

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