Samsung is thinking about moving part of its smartphone and electronics manufacturing from Vietnam to India.
The main reason is to lower the risks caused by possible US tariffs on goods coming from Vietnam.
According to Moneycontrol, Samsung has started talks with Indian contract manufacturers like Bhagwati (Micromax) and Dixon to explore this option.
Tariff Changes Prompt Re-Evaluation
US President Donald Trump has announced a 46% reciprocal tariff on Vietnam, while India’s rate remains lower at 26%.
On April 9, he also said that for the next 90 days, countries other than China will face a tariff of 10%.
Talks Underway with Indian Partners
A source told Moneycontrol, “Yes, discussions have started with Indian EMS (Electronics Manufacturing Services) companies, including Samsung’s current partners.
Not just Samsung—other companies with manufacturing in Vietnam are also exploring the idea of shifting production to India.
Samsung and its partners are looking at how to adjust their production strategy in India’s favor.”
Vietnam: Samsung’s Main Production Hub
Currently, Samsung manufactures around 60% of its global smartphone output in Vietnam.
That’s about 132 million of the 220 million smartphones it sells each year, according to Counterpoint Research.
Many of these phones go to the US, which is Samsung’s second-largest market. But with trade tensions rising, India is now being seen as a strategic backup location.
India as a Strategic Manufacturing Base
Sources say Samsung may use its existing factories in Uttar Pradesh and Chennai, along with Indian EMS partners’ facilities, to produce smartphones and other electronics like TVs and home appliances for export.
Samsung’s Existing Presence in India
Samsung already produces most of its smartphones and electronics in its factories located in Uttar Pradesh and Chennai.
In addition, it outsources the production of certain smartphone models and consumer products to Indian companies like Dixon Technologies.
Participation in India’s PLI Scheme
Samsung has been a participant in India’s Production-Linked Incentive (PLI) scheme for the past five years.
The company continues to benefit from it and, according to sources, is now eligible for incentives worth over ₹1,000 crore.
