The plant has been under the spotlight following two major labour disputes in less than a year. In February 2025, workers staged a sit-in after suspensions, while in September 2024, a five-week strike over wage hikes and union recognition forced Samsung to engage with workers' demands.

Announcing the new investment, Tamil Nadu’s industries minister T.R.B. Rajaa said the decision “reinforces Samsung’s faith in the state's labour force.” The expansion is expected to create 100 additional jobs at the plant, which already employs over 2,000 people.

However, tensions persist between the workers' union and Samsung, with the union accusing the company of union-busting tactics—an allegation Samsung denies, stating it complies with all applicable laws.

The Chennai facility manufactures refrigerators, televisions, and washing machines and contributed about 20 per cent of Samsung’s $12 billion India sales in FY23. The company has not yet specified the timeline for the new investment.

Image source:indiablooms