LG Electronics Targets India for Semiconductor and AI Development
LG Electronics aims to harness India’s burgeoning software expertise to propel advancements in semiconductors, robotics, and artificial intelligence (AI) within its product line.
The company is poised to enhance its export capabilities by leveraging the free trade agreements that the Indian government is negotiating globally, according to CEO William Cho.
“India is evolving beyond just a hub of cost competitiveness; it has emerged as a nation of unparalleled capabilities,” Cho stated in an interview.
“Indeed, the coexistence of cost-effectiveness for hardware and superior software capabilities is noteworthy.” Cho’s association with LG’s operations in India dates back to its initial establishment in Greater Noida in 1998.
Strategic Expansion of R&D Initiatives
Currently recognized as the largest manufacturer of home appliances and televisions in the country, LG operates two production facilities and is in the process of constructing a third in Andhra Pradesh, with a considerable investment of ₹5,001 crore dedicated to the production of refrigerators, washing machines, air conditioners, and their components.
Cho articulated the company’s intention to establish additional factories in India, asserting that the country’s rapidly expanding GDP places it on the cusp of an “inflection point,” which could lead to unprecedented demand for appliances and consequent supply shortages.
He emphasized that government initiatives, such as production-linked incentives, would bolster these expansion efforts.
Having been with LG for 38 years, Cho underscored that India is seen as a pivotal research and development hub. The firm plans to double its R&D workforce in India by 2027, currently comprised of approximately 500 employees focused on innovation in semiconductors and robotics.
Replication of Successful Models
LG intends to leverage insights gained in India to establish similar manufacturing facilities in other emerging markets across the Global South, identified as a major avenue for growth.
“It’s impressive to witness the Indian subsidiary’s remarkable performance over the past three decades. We aim to duplicate best practices from India in analogous markets,” he remarked.
In a significant move, LG Electronics India Ltd was listed on Indian stock exchanges following an initial public offering (IPO) that saw the parent company divest a 15% stake. The IPO was overwhelmingly successful, being subscribed 54 times and raising approximately $1.31 billion (₹11,605 crore).
Cho was present in India for the listing, and shares surged nearly 50% on their first trading day on the Bombay Stock Exchange, closing at ₹1,689.40 and elevating the company’s market capitalization to about ₹1.15 lakh crore.
“Our operations in India are self-sufficient with limitless potential. We aspire for LG India to evolve into a quintessential national corporation and mirror our global success,” declared Cho.
The IPO marks LG’s inaugural venture into local listings and signifies the beginning of its growth strategies for markets in the Global South.
LG India currently leads the local market in washing machines, refrigerators—both direct cool and side-by-side—4K televisions, window inverter air conditioners, and five-star rated AC units.
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