South Korean tech giant Samsung is actively exploring the possibility of relocating a portion of its smartphone and electronics manufacturing from Vietnam to India. This strategic move comes in response to escalating trade tensions and the imposition of significant US tariffs on Vietnamese exports, which have disrupted the global supply chain of major electronics manufacturers.
Vietnam currently serves as Samsung’s primary production hub, accounting for nearly 60% of the 220 million smartphones the company sells worldwide annually. However, with the US imposing a 46% tariff on Vietnamese goods, Samsung is seeking to diversify its manufacturing base to mitigate risks associated with these tariffs and safeguard its global market, especially the crucial US market.
Samsung has initiated discussions with Indian electronic manufacturing service (EMS) providers, including established contract manufacturers like Bhagwati (associated with Micromax) and Dixon Technologies. These talks focus on leveraging existing Samsung facilities in Chennai and Uttar Pradesh, as well as the manufacturing capabilities of Indian EMS partners, to produce smartphones, TVs, and home appliances for export.
The Indian government’s Production Linked Incentive (PLI) scheme has played a pivotal role in attracting Samsung’s investment. Samsung has been a consistent beneficiary of this scheme for five years and recently achieved its fifth-year target of ₹25,000 crore in incremental smartphone manufacturing, making it eligible for over ₹1,000 crore in incentives. This strong government support, combined with India’s improving manufacturing ecosystem, infrastructure, and favorable geopolitical environment, positions India as an attractive alternative to Vietnam.
Industry experts note that Samsung’s move aligns with a broader trend among global tech companies seeking to reduce reliance on Vietnam and China amid ongoing tariff wars and geopolitical uncertainties. Google and Apple are also reportedly shifting some of their production to India, highlighting the country’s growing prominence as a global electronics manufacturing hub.
Samsung’s diversification strategy aims to maintain supply chain resilience and ensure uninterrupted access to key markets. By expanding production in India, Samsung can better navigate the challenges posed by US tariffs while tapping into India’s vast domestic market and export potential.