Samsung In Talks To Move Smartphone Production To India

Amid sweeping retaliatory tariffs imposed by the US on Vietnam, South Korean tech major Samsung is reportedly considering shifting some of its smartphone and electronics manufacturing to India. 

As per Moneycontrol, the company has begun talks with Indian electronics manufacturing players to explore the possibility of shifting a portion of its manufacturing from Vietnam. 

“Yes, talks have begun with Indian EMS players, including their existing partners. Not just Samsung, all other companies with a base in Vietnam are exploring possibilities to shift some production to India,” a source reportedly said. 

It is pertinent to note that earlier this month the US administration announced the imposition of a 46% tariff on Vietnamese goods. At the same time, a levy of 10% was also announced on Indian goods as part of US president Donald Trump‘s retaliatory tariffs against trading partners. 

However, a 90-day pause was announced by the Trump administration a week later on April 9, which excluded China. If reports are to be believed, tech companies are using the three-month window to reassess operations and diversify production to countries with lower tariffs.

India could witness a healthy windfall if Samsung moves even a part of its manufacturing to the country. For context, the South Korean company exported smartphones worth $52 Bn in fiscal year 2023-24 (FY24), with Vietnam serving as a key manufacturing base. 

The development comes at a time when a host of global tech giants are making a beeline for India to escape the high tariffs imposed by the US on neighboring countries like China, and to leverage the Centre’s production-linked-incentives (PLIs) for manufacturers. 

Just a day ago, reports surfaced that Google’s parent Alphabet was in advanced talks to shift a part of its Pixel smartphone production from Vietnam to India. The big tech major is said to have already completed its first round of discussion with contract manufacturers like Dixon Technologies and Foxconn a fortnight ago.

Last month, it was also reported that Apple’s contract manufacturer Foxconn was looking to double the production of iPhones at its Indian facilities to 25-30 Mn units in the ongoing calendar year. 

On the other hand, Chinese auto giant BYD was also recently reportedly looking to set up an EV production unit near Hyderabad with an investment of $10 Bn to build battery systems and electric cars.