After Apple, the South Korean tech giant Samsung is considering shifting some of its smartphone and electronics manufacturing to India amid the steep US tariffs on Vietnam as per the media report.
Samsung Planning To Shift Production To India
The sources known to the matter said, “Yes, talks have begun with Indian EMS 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.”
Interestingly these comments came just a day after reports emerged that Alphabet Inc, the parent company of Google, has also begun discussions with its contract manufacturing partners in India—Dixon Technologies and Foxconn as they plan to move a portion of global Pixel smartphone production from Vietnam to India.
Coming to Vietnam, it serves as a key manufacturing hub for Samsung, with the export of over $52 billion worth of mobile phones and spare parts in the financial year 2024.
This holds a great significance as it accounts for 9 percent of the country’s overall trade.
For instance, Vitenam’s electronics exports touched $142 billion, last year.
Notably, this is nearly five times what India was able to achieve in FY24 at $29.2 billion.
Indian Positioning Itself As A Key Player In Global Electronics Supply Chain
Now India can position itself as a key player in the global electronics supply chain considering the other players like Samsung and Alphabet are exploring a manufacturing shift to India, and Apple already assembling products locally.
It can not be denied that this recent shifts are being driven not just by lost cost, but also by shifting geopolitical dynamics.
The US administration, led by President Donald Trump, announced a 46 per cent tariff on Vietnamese imports earlier this month.
Similarly, the country imposed a 26 percent tariff on India.
Moving ahead, they have declared a 90-day pause on reciprocal tariffs was declared on April 9 for trading partners except China.
It appears that China, the another major electronics manufacturing base, was excluded from the deferment and continues to face a 145 percent tariff.
In the meantime the Tech giants with a manufacturing base in Vietnam, including Samsung, are now using this 90-day pause as a window to reassess operations and consider diversifying production.
