Samsung may shift manufacturing from Vietnam to India amid US tariff threat: Report

Samsung is actively exploring a shift in part of its smartphone and electronics manufacturing from Vietnam to India, a report by Moneycontrol suggests. The reports of massive plans by South Korean conglomerate follow steep tariffs proposed by the Trump administration on products from Vietnam. While the Trump government has proposed a 46% tariff on imports from Vietnam, India faces a more moderate 26% levy, and has been granted a 90-day pause on reciprocal tariffs, excluding China.

For those who are unaware, Vietnam currently serves as Samsung’s primary global manufacturing hub, producing roughly 60% of the 220 million smartphones the company sells annually. The nation exported over $52 billion worth of mobile phones and components for Samsung in FY2024, making up 9% of its overall trade. However, amid escalating trade tensions and the lure of a more favourable geopolitical and tariff landscape, Samsung is reassessing this heavy reliance.

‘Make in India’ may gets a new boost

According to sources cited by Moneycontrol, Samsung has initiated talks with Indian contract manufacturers such as Bhagwati (Micromax) and Dixon Technologies, both of whom are existing partners. The company is reportedly considering using its Uttar Pradesh and Chennai facilities, along with outsourcing to Indian EMS firms, to manufacture not only smartphones but also televisions and home appliances for export to markets like the US.

Samsung already manufactures many of its products in-house in India but has diversified output through partners like Dixon and international ODMs like Huaqin and Longcheer, the latter of which already works with Dixon to produce Samsung-branded phones. Notably, Huaqin recently entered India via a joint venture with Micromax, operating within Vivo’s premises, and is now in talks to add Samsung to its production portfolio.

Samsung’s deliberations mirror a broader trend. Earlier this week, It was reported that Alphabet Inc., Google’s parent company, is working with Foxconn and Dixon to relocate part of its Pixel phone production from Vietnam to India. Apple, too, has significantly ramped up local manufacturing in recent years, buoyed by the Indian government’s Production-Linked Incentive (PLI) scheme.