Samsung Considers Manufacturing Shift from Vietnam to India
South Korean electronics leader Samsung is contemplating a strategic transition of part of its smartphone and consumer electronics manufacturing from Vietnam to India. This potential change aims to mitigate the risks posed by possible US tariffs on Vietnamese exports, as reported by Moneycontrol.
As outlined in the report, Samsung has begun preliminary discussions with Indian contract manufacturers like Dixon Technologies and Bhagwati Products (Micromax) to assess the possibility of relocating some of its production currently situated in Vietnam.
A source familiar with the discussions, who wished to remain anonymous, stated that conversations have started with Indian electronic manufacturing services (EMS) companies, including their current partners. The source added that not only Samsung but also other firms with a presence in Vietnam are investigating opportunities to shift portions of their production operations to India, with Samsung actively negotiating production changes to favour India.
Vietnam has been a pivotal global production hub for Samsung. Nevertheless, escalating trade tensions are prompting the company to view India as a viable alternative, especially for exports to the US, which ranks as its second-largest market worldwide.
Samsung isn’t the only smartphone manufacturer eyeing India for its production needs. Recent reports indicate that Google is also considering relocating its manufacturing from Vietnam to India due to the looming possibility of Trump’s tariffs elevating smartphone prices.
At present, Pixel smartphones assembled in India primarily target the domestic market, where the import duties stand at 16.5%. These devices are manufactured by Dixon in Noida and Foxconn in Tamil Nadu, with Dixon producing the latest models while Foxconn focuses on older variants.
Dixon is responsible for approximately 70% of the Pixels being produced in India, and Foxconn initiated its production in the country in August 2023.