Samsung May Shift Phone Manufacturing to India From Vietnam; Google, Apple Already Making Moves: Report

Samsung is reportedly exploring the relocation of a portion of its smartphone and electronics production from Vietnam to India. This comes in the wake of the United States (US) imposing steep tariffs on Vietnamese imports, according to a report by 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," as per source cited by Moneycontrol.

The South Korean company has previously discussed moving some of its production to India with contract manufacturers Dixon and Bhagwati Products Limited, the electronics manufacturing arm of Micromax.

Vietnam has been a major manufacturing base for Samsung for several years. In the financial year 2024, Samsung exported more than $52 billion worth of mobile phones and spare parts from Vietnam, accounting for roughly 9% of the Southeast Asian country's total trade.

According to Counterpoint Research, Vietnam produces about 60% of the 220 million cellphones that Samsung sells annually worldwide. The figure illustrates how crucial Vietnam is to Samsung's global supply chain. However, the latest trade policy changes by the U.S. government are now prompting the tech giant to reconsider its manufacturing strategy.

Earlier this month, the U.S. administration under President Donald Trump imposed a 46% tariff on Vietnamese imports. In contrast, Indian exports to the U.S. are subject to a much lower tariff of 26%. A 90-day exemption from reciprocal tariffs has been granted to all trading partners except China, which faces a 145% duty. This substantial disparity has led many multinational corporations to explore alternative locations with more favorable trade terms.

Global Top Smartphone Companies Shifting To India After Trump's Tariff Imposition

According to reports, Alphabet Inc., the parent company of Google, is also in discussions with Dixon Technologies and Foxconn, two of its Indian contract manufacturers, about moving a portion of its Pixel smartphone manufacturing from Vietnam to India. Iphone maker Apple Inc. has already started localising the assembly of a number of its goods. In a recent joint venture with Micromax's Bhagwati Products, Shanghai-based Huaqin made its debut in India which functions under Vivo's premises.

While India's electronics exports in FY2024 stood at $29.2 billion which is far lower than Vietnam's $142 billion, the country's improving infrastructure, expanding EMS ecosystem, and policy incentives are now drawing increasing attention from global manufacturers.

Although no formal announcement has been made by Samsung yet, sources indicate that early-stage talks with Indian partners reflect a serious intent to diversify its manufacturing footprint.