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Samsung is planning to shift smartphone production from Vietnam to India

by VARINDIA 2025-04-26

Vietnam is currently Samsung’s main production base, but trade tensions are pushing the company to look at India as a backup, especially for U.S. exports.

Samsung is reportedly exploring a shift of part of its smartphone production from Vietnam to India. The South Korean tech giant has entered early discussions with Indian contract manufacturers Dixon Technologies and Bhagwati Products (Micromax), signaling a potential reconfiguration of its global supply chain amid rising trade uncertainties.

From Samsung Vietnam to Samsung India

Currently, Samsung Vietnam serves as the company’s primary global smartphone production hub, accounting for over 50% of its global output. Devices manufactured here are exported to markets worldwide, including the United States, which is a critical destination. However, fears of potential U.S. tariffs on Vietnamese exports—especially under former President Donald Trump’s renewed influence on trade policy—are prompting Samsung to diversify its manufacturing footprint.

India, with its rapidly growing infrastructure, skilled labor force, and government support under the Production Linked Incentive (PLI) Scheme, is emerging as a top contender.

Samsung India’s Noida Plant to Play a Central Role

Samsung already has a significant presence in India through its Noida manufacturing facility, touted as one of the world’s largest mobile phone factories. The Noida plant, currently focused on domestic production, is expected to take on a larger role in global supply, especially for markets like the U.S. This would elevate Samsung India manufacturing capabilities, turning the country into a key node in the company's international supply network.

Several key factors are driving Samsung's interest in India:

Avoidance of U.S. tariffs on Samsung Vietnam exports
India's robust PLI scheme and tax incentives for electronics manufacturing
Lower labor costs and expanding manufacturing ecosystem
Government initiatives promoting “Make in India” and “Atmanirbhar Bharat”
Rising domestic smartphone demand and export opportunities

If finalized, this move could lead to a significant ramp-up of Samsung smartphone production in India, helping the company mitigate global supply chain risks while strengthening its presence in one of the fastest-growing smartphone markets.

India: The Emerging Global Manufacturing Hub

Samsung isn't the only tech giant looking to India. Google is also evaluating plans to shift some of its smartphone manufacturing from Vietnam to India. Apple has already begun local iPhone production in India and expanded its supplier base in the country. This trend underscores India’s growing status as a global electronics manufacturing hub, especially for companies looking to de-risk from over-reliance on China or Vietnam.

While no formal announcement has been made yet, the talks between Samsung and Indian partners suggest a high likelihood of increased production activity in India. If the Samsung Vietnam to India manufacturing shift materializes, it could significantly boost India's export capabilities and provide a shot in the arm to the local electronics ecosystem.