Samsung Electronics, a South Korean smartphone maker, intends to enhance its presence in the smartphone assembly market by establishing a new factory in Beni Suef. The upcoming 6,000-square-meter plant, scheduled to commence operations in the fourth quarter of 2023, will manufacture phones for both local consumption and export. The project is expected to generate approximately 1,400 direct and indirect jobs. Specific details such as the investment amount, the production capacity and the models to be assembled onsite remain undisclosed. Furthermore, it is unclear how many phones will be exported and whether Samsung has committed to utilizing local components for production.

Samsung already operates a factory in Beni Suef, established in 2014 with an investment of US$270 million. The current facility manufactures smartphones, TVs and tablets and, last year, introduced Egypt-made smartphones to the market. With an annual production capacity of 6 million units, approximately 85% of the output is exported to the Middle East and Africa.

Apart from Samsung, other multinational companies are also seeking to expand their presence in Egypt. Chinese company Xiaomi plans to establish a phone factory worth EGP 1 billion, expected to open in the second half of this year. Additionally, HMD Global, the manufacturer of Nokia phones, intends to increase production capacity in Egypt and commence phone exports to North Africa.

This trend aligns with the industry's localization strategy, as promoted by the Communications Ministry. Over the past years, the ministry has been working towards localizing Egypt's electronics manufacturing industry through initiatives like ITIDA's Egypt Makes Electronics program. The goal is to reduce the country's reliance on imported electronic components and boost exports, primarily focusing on products such as mobile phones, tablets, TVs, smart meters and solar energy systems.

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