Samsung is actively exploring the possibility of moving a significant portion of its smartphone and electronics manufacturing from Vietnam to India, according to a report by Moneycontrol. The move comes as the South Korean tech giant reconsiders its global supply chain strategy in response to looming U.S. tariffs.
The Trump administration has proposed a steep 46% tariff on imports from Vietnam – a country that currently serves as Samsung’s primary global production hub, accounting for around 60% of the 220 million smartphones it sells annually.
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In contrast, India faces a more moderate 26% tariff, with a 90-day exemption on reciprocal duties, excluding China.
Notably, Vietnam exported over $52 billion worth of mobile phones and components for Samsung in FY2024, representing 9% of its total trade.
Reports indicate that Samsung is already in talks with Indian contract manufacturers and existing partners such as Bhagwati (Micromax) and Dixon Technologies. The company is reportedly weighing options to expand output through its existing facilities in Uttar Pradesh and Chennai and outsourcing to Indian electronics manufacturing service (EMS) firms.
The plan could include the production of not just smartphones but also televisions and home appliances for export to key markets like the United States.
Currently, Samsung manufactures many of its devices in-house in India and also partners with firms like Dixon and overseas original design manufacturers (ODMs) such as Huaqin and Longcheer.
Notably, Huaqin has entered the Indian market through a joint venture with Micromax, operating within Vivo’s premises, and is reportedly in discussions to expand its Samsung portfolio.
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This move is part of a broader industry trend. Tech giants like Google and Apple are also ramping up production in India.
Earlier this week, reports surfaced that Alphabet Inc. is collaborating with Foxconn and Dixon to shift part of its Pixel phone production from Vietnam to India. Meanwhile, Apple has steadily increased local manufacturing, boosted by India’s Production-Linked Incentive (PLI) scheme.
