Samsung Considers Shifting Manufacturing from Vietnam to India Amid Rising US Tariffs
In a major development that could bolster India’s electronics manufacturing sector, South Korean tech giant Samsung is reportedly exploring the possibility of relocating part of its smartphone and electronics production from Vietnam to India. The move comes in response to steep US tariffs on Vietnamese imports, a source familiar with the matter told Moneycontrol.
“Yes, talks have begun with Indian EMS (electronic manufacturing services) players, including their existing partners. Not just Samsung, all other companies with a base in Vietnam are exploring possibilities to shift some production to India”, the source confirmed.
Vietnam has long served as a critical manufacturing hub for Samsung, accounting for over $52 billion in mobile phone and spare parts exports in FY24 approximately 9% of the country’s total trade. However, recent geopolitical developments are prompting major multinational firms to reconsider their manufacturing strategies.
Earlier this month, the US administration under President Donald Trump announced a 46% tariff on Vietnamese imports. In contrast, India faces a comparatively lower tariff of 26%. A 90-day pause on reciprocal tariffs effective from April 9 has been granted to all trading partners except China, which continues to face a steep 145% duty.
The tariff decision is already triggering a potential realignment of global supply chains. Alphabet Inc., Google’s parent company, is also reportedly in talks with its contract manufacturers in India, including Dixon Technologies and Foxconn, to shift part of its Pixel smartphone production from Vietnam to India. Apple, meanwhile, has already begun assembling several products locally.
While India’s electronics exports stood at $29.2 billion in FY24 significantly lower than Vietnam’s $142 billion the current shifts could provide a strategic opportunity for India to emerge as a key electronics manufacturing hub.
With top tech players reassessing operations, India is well-positioned to capitalize on the changing global trade dynamics and strengthen its presence in the electronics supply chain.
