South Korean tech giant Samsung is reportedly planning to shift a portion of its smartphone and electronics manufacturing from Vietnam to India, driven by steep US retaliatory tariffs on Vietnamese imports. The US imposed a 46% tariff on Vietnam and a 26% levy on India, prompting Samsung to explore India as a cost-effective alternative to maintain its US market competitiveness, according to a Moneycontrol report on April 23, 2025.
Vietnam, Samsung’s primary production hub, accounts for nearly 60% of the 220 million smartphones it sells globally each year, with exports worth $52 billion in FY24. However, the tariff hike has disrupted supply chain strategies, pushing Samsung to initiate talks with Indian electronics manufacturing service (EMS) players like Dixon Technologies and Bhagwati (Micromax) to relocate some production. The company is also leveraging its existing facilities in Noida and Chennai, which already produce flagship models like the Galaxy S25 and Fold.
India’s lower 26% tariff rate and the government’s Production-Linked Incentive (PLI) scheme, under which Samsung is eligible for over Rs 1,000 crore in incentives, make it an attractive destination. Sources indicate that Samsung could use the 90-day tariff pause announced by the US on April 9 to reassess and diversify its operations. Posts on X reflect optimism, with users noting that this shift could boost India’s manufacturing sector and job creation.
This move aligns with a broader trend, as tech giants like Alphabet and Apple also explore shifting production to India to mitigate tariff impacts. While challenges remain, including the need to expand India’s supply chain capacity (currently handling 20% of Samsung’s output), the shift could position India as a key player in global electronics manufacturing.
As Samsung navigates these geopolitical dynamics, its potential pivot to India underscores the country’s growing appeal as a manufacturing hub. Stay tuned for updates on this transformative development.
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