Egypt is rapidly emerging as a prominent smartphone manufacturing hub, fostering partnerships with major players like Samsung, Oppo, Xiaomi, Vivo, and Nokia. This initiative aims to leverage Egypt's strategic location and growing technological capabilities.
Samsung's Investment and Expansion in Egypt
Samsung Electronics Egypt has been granted a prestigious license by the Egyptian cabinet to establish and operate a mobile phone manufacturing facility in Beni Suef. This significant development, announced on August 30th, marks a new chapter in Samsung’s expansion.
The Beni Suef Factory
Samsung’s factory is located in Beni Suef. Won Keun Kim, Chairperson of Samsung Electronics Egypt, noted that Samsung Electronics’ factory in Beni Suef is the company’s first in the Middle East and Africa. Jun Su Jung, the Chairman of Samsung in Egypt, stated that “Samsung Electronics’ factory complex in Beni Suef, Egypt, is the company’s first in the Middle East and Africa, and one of only 14 factories worldwide.”
The state-of-the-art factory is set to occupy a substantial 6,000-square-meter area within the Kom Abu Radi Industrial Zone. The mobile phone manufacturing facility in Beni Suef currently employs around 1,400 workers and covers an area of over 9,000 square meters.
With ambitious timelines, the company aims to complete the initial phase of the project and commence production in the latter half of 2024. The entire venture is slated for completion before December 31st, 2025, reflecting Samsung’s commitment to swift execution.
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Investment and Production Capacity
Kim added that total investments in the Samsung Beni Suef factory amount to $700m, with an additional $30m invested in tablet manufacturing. Egyptian Prime Minister Mostafa Madbouly recently visited the complex, and Jeong revealed that the plant currently has an annual production capacity of 6 million units, including televisions, mobile phones, and tablets. The factory produces 702,000 tablets annually, which are supplied to the Ministry of Education. Regarding Samsung’s mobile phone factory, Kim explained that mobile production began in 2023 with 1.2 million units.
He told Daily News Egypt that the Beni Suef factory currently exports 85% to 90% of Samsung products to more than 60 countries, and is one of 14 factories around the world. He said that its production capacity reaches 6 million screens annually, with sizes ranging from 32 to 98 inches. He also said that Samsung has developed a new technology in making TVs, which is OLED, and it introduced it last year in sizes 55 and 65 inches.
Samsung Electronics Egypt announced that it will produce the new 98-inch neo QLED 8K TV screen in its factory in Beni Suef, and launch it in the local market by the end of September.
Samsung Egypt currently produces six phones, namely A13, A23, Galaxy A23, Galaxy A14, Galaxy A24, and Galaxy A34.
Job Creation and Economic Impact
Moreover, this endeavor is expected to have a positive socio-economic impact, generating a total of 768 employment opportunities, both directly and indirectly, by the close of 2025. Samsung’s presence in Beni Suef has not only augmented the technological sector but also significantly boosted local employment. The new factory is going to create around 1,400 direct and indirect job opportunities in the area, particularly in Upper Egypt. This endeavor providing 1,400 direct and indirect job opportunities for Egyptian workers.
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Government Support and Strategic Vision
The Prime Minister affirmed that the Egyptian government places great importance on localising advanced technological industries. Madbouly directed El-Khatib to hold intensive discussions with Samsung Electronics. Egypt has introduced a range of investment incentives to attract foreign direct investment (FDI) in strategic sectors, including electronics manufacturing.
On Saturday, March 29, Minister of Investment and Foreign Trade Hassan El Khatib met with Wonkyong Kim, CEO of Samsung Egypt, to discuss the company’s ongoing projects and its plans for expanding operations in the Egyptian market. Minister Khatib praised Samsung’s continuous progress in Egypt and emphasized the company’s crucial role in supporting the local electronics sector. He also stressed Egypt’s ambition to become a regional hub for technology industries, leveraging its strategic location and its extensive network of free trade agreements to open doors to global markets.
El-Khatib explained that the new export rebate programme is highly ambitious and was approved last week during a cabinet meeting, following discussions with representatives of export councils. The Minister pointed out that the new export rebate programme includes dedicated schemes to support exports from projects located in Upper Egypt. The Minister of Investment and Foreign Trade confirmed that the new programme includes a new mechanism allowing for the direction of 7 billion Egyptian pounds according to specific objectives and criteria, among them supporting the localisation of advanced technology industries.
Samsung's Commitment to Egypt
Jeong emphasized Samsung’s commitment to making Egypt a regional hub for production and exportation, serving the Middle East, Europe, and Africa. Samsung plans to position Egypt as a regional production and export hub, targeting markets in the Middle East, Europe, and Africa.
In response, Wonkyong Kim commended the Egyptian government’s support for Samsung’s investment and expansion efforts.
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Samsung’s partnership with the Egyptian government dates back to the establishment of its factory in Beni Suef in 2013.
The decision to establish this new factory was made following a meeting between Egypt's Minister of Communications and Information Technology Amr Talaat and Chairman of Samsung Egypt Jun Su Jung.
The newest Samsung phones will be manufactured at this factory to meet the growing demand in the Egyptian market.
Given the size of this factory, it's unlikely that the phones produced here will be exported to other markets across the globe. Samsung's biggest smartphone manufacturing facility remains in Vietnam. Phones produced there are shipped to markets all over the world.
Gaafar said that the company offers various solutions and installment systems in cooperation with consumer finance companies and banks, to make screens available to customers without administrative fees, booking advances, or interest.
Egypt may not come to mind when you think about where Samsung phones are made, but pretty soon, it's going to be on that list as well. The country's Ministry of Communications and Information Technology has also confirmed that Samsung is setting up a new factory to produce smartphones in Egypt.
Samsung's first African factory in Egypt
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