Samsung Electronics has ruled out listing its India business, instead prioritizing AI adoption across products and expanding consumer finance schemes to drive growth in the key market.

JB Park, President and CEO of Samsung Southwest Asia, confirmed in an interview with PTI that the company has no immediate IPO plans, preferring internal growth strategies over market-funded expansion. This approach contrasts with other South Korean companies like Hyundai Motor India and LG Electronics, which have utilized public markets to raise capital and strengthen their local presence.

Strategic Focus on Manufacturing and AI Innovation

The technology giant is strengthening its manufacturing capabilities in India, having applied under the production-linked incentive (PLI) scheme for components to manufacture mobile phone displays locally. Samsung operates the world's largest smartphone manufacturing facility in Noida, which has evolved into a significant export hub in recent years.

Park emphasized that Samsung maintains adequate funding through various capital acquisition methods, including institutional borrowings and corporate bonds, making an IPO unnecessary for current growth objectives. The strategy reflects a dual aim of leveraging AI to differentiate products in a crowded consumer electronics market while using financing solutions to boost sales amid slowing global demand.

Consumer Finance Expansion Drives Rural Growth

Samsung's Finance+ EMI scheme has emerged as a crucial growth engine, particularly in rural markets across north and northeast India. The program's performance demonstrates strong market traction:

The expansion of interest-free financing from smartphones to home appliances including televisions and washing machines represents Samsung's strategy to boost sales while making premium products more accessible to Indian consumers.

AI-Powered Product Innovation at CES 2026

Samsung plans to showcase significant AI advancements at CES 2026 in Las Vegas, positioning artificial intelligence as a cornerstone for future product development. The company's "The First Look" event on January 4, 2026, will highlight innovations across multiple product categories.

Key AI-enhanced products to be unveiled include:

The AI Vision technology in Samsung's refrigerators will feature improved on-device food recognition capabilities, expanding identification of both fresh and processed foods to deliver more comprehensive kitchen management experiences. Park noted that the company's AI appliances are entering a "new turning point," delivering smarter, more personalized experiences that enhance everyday living.

Global R&D Capabilities in India

Samsung's commitment to the Indian market extends beyond manufacturing and sales, with the company employing over 10,000 engineers across three research and development centers and one design center in India. This substantial engineering workforce contributes to both local market innovations and global product development initiatives, reinforcing India's strategic importance in Samsung's worldwide operations.

The company's decision to forgo public listing while investing heavily in AI integration and consumer finance reflects confidence in India's long-term growth potential and Samsung's ability to maintain strategic control over its expansion trajectory in this critical market.

Samsung Electronics and SK Hynix, two of South Korea's leading semiconductor manufacturers, saw their shares decline sharply following a significant policy shift by the United States government. The move, which revokes previously granted authorizations, is set to impact the companies' chip production capabilities in China.

Market Reaction

The news triggered a notable sell-off in the South Korean tech sector:

The semiconductor supply chain also felt the impact:

Policy Change Details

The U.S. government has rescinded authorizations that allowed Samsung and SK Hynix to procure American semiconductor manufacturing equipment for their chip plants in China. This decision comes as part of broader U.S. efforts to restrict advanced chip technology exports to China.

Key points of the policy change:

• The revocation takes effect in 120 days
• It ends exemptions that had shielded the companies from previous U.S. restrictions on chip-related exports to China

Impact on Production

The policy change could significantly affect both companies' operations:

• Analysts estimate that over one-third of Samsung's DRAM output comes from China
• For SK Hynix, approximately 30-40% of its DRAM and NAND production is based in China

Company Responses

• SK Hynix stated it would maintain communication with both Korean and U.S. governments to minimize the impact on its business operations
• Samsung Electronics has declined to comment on the situation

The development marks a critical juncture for the global semiconductor industry, highlighting the ongoing tensions between the U.S. and China in the high-tech sector. As the 120-day countdown begins, the industry will be closely watching how these South Korean tech giants navigate the new restrictions and adjust their global production strategies.