In a significant move that could reshape its global manufacturing strategy, Samsung is considering shifting a portion of its smartphone and electronics production from Vietnam to India. This development comes as the South Korean tech giant seeks to navigate rising trade tensions and potential US tariffs on Vietnamese exports.
According to industry sources, Samsung has already initiated discussions with Indian contract manufacturers like Bhagwati (Micromax) and Dixon Technologies to evaluate the feasibility of relocating some of its operations to India. “Not just Samsung, all other companies with a base in Vietnam are exploring possibilities to shift some production to India,” a person familiar with the matter told Moneycontrol.
India Gains Traction as a Strategic Manufacturing Hub
Currently, Vietnam is Samsung’s primary production hub, accounting for around 60% of the 220 million smartphones the company sells globally each year. However, escalating geopolitical risks and a 46% import tariff imposed by the US on Vietnamese goods have prompted Samsung to explore safer alternatives — with India emerging as a strong contender.
Samsung may consider using its existing manufacturing plants in Uttar Pradesh and Chennai, as well as facilities operated by Indian EMS partners, to produce smartphones, TVs, and home appliances for export. At present, Samsung manufactures a large share of its products in-house, but it also works with Indian ODM partners like Dixon and Bhagwati for certain product lines.
Global ODMs Already Active in India
The shift in strategy is also evident in the actions of global ODMs. Shanghai-based Huaqin, a major Samsung partner, recently entered the Indian market through a joint venture with Bhagwati Products, operating under Vivo’s premises. Meanwhile, Longcheer, another Samsung ODM, is already collaborating with Dixon Technologies for smartphone manufacturing in India.
An executive close to the matter mentioned that the Huaqin-Bhagwati joint venture is in talks with Samsung to expand their partnership, which could include new smartphone models.
India’s Manufacturing Ecosystem is Maturing
According to Tarun Pathak, Research Director at Counterpoint Research, supply chain checks indicate a growing interest among global brands to invest in India’s improving electronics manufacturing ecosystem. He emphasized that India’s progress is being supported by strong infrastructure, favorable government policies, and the production-linked incentive (PLI) scheme.
Samsung has been participating in India’s PLI scheme for the past five years and has now become eligible for incentives worth over ₹1,000 crore, having achieved its ₹25,000 crore incremental target.
Trade War Shifts Momentum Towards India
As part of broader geopolitical developments, US President Donald Trump recently imposed steep tariffs — 46% on Vietnamese imports and 26% on Indian imports — although these have been temporarily paused for 90 days, excluding China which continues to face the steepest tariffs.
With India facing less severe tariff implications, it is rapidly accelerating trade talks with the US, aiming to finalize the first phase of a trade deal by September–October. The two nations aim to double bilateral trade from $190 billion to $500 billion by 2030.
This changing global trade landscape is also drawing attention from other tech giants. Alphabet, the parent company of Google, is reportedly in talks with Dixon and Foxconn to shift Pixel smartphone production to India, especially for devices aimed at US markets.
