Samsung May Shift Manufacturing to India Amid US Tariffs on Vietnam

Samsung, the South Korean tech giant, is reportedly in talks to shift some of its smartphone and electronics manufacturing from Vietnam to India. This move comes after the US announced a 46% tariff on Vietnamese goods earlier this month, as part of retaliatory trade measures. Indian goods were also hit with a 10% levy, but a 90-day pause was later declared by the US administration, excluding China.

Samsung Begins Talks with Indian Manufacturers

 According to reports from Moneycontrol, Samsung has initiated discussions with Indian electronic manufacturing service (EMS) providers, including its current partners. A source stated, “Not just Samsung, all companies with a base in Vietnam are exploring possibilities to shift some production to India.”

India Stands to Benefit

 If Samsung decides to shift part of its operations to India, it could mean a significant boost to the Indian electronics sector. In FY24 alone, Samsung exported smartphones worth US$52 billion, with Vietnam as a key manufacturing base.

India could benefit due to:

• Lower tariffs (at least for now)

• Production-Linked Incentive (PLI) schemes by the Indian government

• A push by tech firms to diversify their supply chains

Other Tech Giants Eyeing India To Avoid US Tariffs

 Samsung isn’t alone. Other tech firms are also looking to move out of Vietnam and China:

• Google’s parent Alphabet is in advanced talks to shift Pixel smartphone production to India, with discussions underway with Dixon Technologies and Foxconn.

• Apple’s manufacturer Foxconn is planning to double iPhone production in India to 25–30 million units this year.

• Chinese EV maker BYD is planning a US$10 billion investment to build an electric vehicle and battery production unit near Hyderabad.

Conclusion

With rising tariffs and global uncertainty, India is emerging as a preferred manufacturing hub for major tech companies. The next few months could see big announcements as companies shift part of their production lines to India.

Read more on: US Considers Scaling Back Auto Tariffs Amid Industry Concerns: Reports

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