South Korean electronics giant Samsung is evaluating a potential shift of a portion of its smartphone and consumer electronics production from Vietnam to India, in an effort to hedge against the risk of possible US tariffs on Vietnamese exports, Moneycontrol has reported.
According to the report, the company has initiated early-stage discussions with Indian contract manufacturers such as Dixon Technologies and Bhagwati Products (Micromax) to explore relocating some of its manufacturing operations currently based in Vietnam.
“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,” a source familiar with the matter told Moneycontrol on condition of anonymity. “Samsung and partners are discussing production adjustments in favour of India.”
While Vietnam currently serves as Samsung’s key global production hub, rising trade tensions have prompted the company to consider India as a strategic alternative, particularly for exports to the US, its second-largest market globally.
Samsung isn’t the only smartphone maker looking towards India for its manufacturing. Earlier this week, it was also reported that Google is looking to move its manufacturing from Vietnam to India as well, amid potential threats of Trump’s tariffs driving up the price of smartphones.
Currently, Pixel smartphones made in India are largely intended for the domestic market, where import duties stand at 16.5%. The devices are assembled by Dixon in Noida and by Foxconn in Tamil Nadu, with the former producing newer models and the latter focusing on older ones.
Dixon accounts for nearly 70% of the Pixels made in India, while Foxconn was the first to begin production here in August 2023.
