
Follow WOWNEWS 24x7 on:
Updated: July 10, 2025 06:33
Samsung Electronics is reorienting its global manufacturing strategy in light of shifting US trade policy, with India being a turning point. The South Korean consumer electronics giant will likely step up smartphone production in India to serve the US market, potentially scaling back Vietnam.
Why the Change?
The Trump administration has imposed severe tariffs: 25% on South Korea and Japan, and 20% on exports of Vietnam
India faces a comparatively lesser 26% duty and hence becomes a more viable base of exports
Samsung COO Won-Joon Choi has expressed commitment to shift production depending on ultimate tariff outcomes
India's Strategic Advantage
Samsung's Greater Noida factory already produces 45 million smartphones annually, and can be expanded to 70 million
India shipped over ₹30,000 crore worth of Samsung handsets in FY25
The business has started small-scale exports to the US from India, a trial by fire amidst geopolitical ambiguity
Diversification and Stability
Samsung is embracing a flexible factory model to shift production between countries
The switch seeks to ensure business continuity and price stability to consumers
China's rare earth supply chain interruptions have had no bearing on production, owing to Samsung's diversified sourcing.
What's Next?
Final decisions will depend on ongoing trade negotiations and tariff completions by August 1
India can do better if Vietnam cannot get favorable terms from the US
Sources: Economic Times, Rediff Money, NDTV Profit, Hindustan Times, Times of India, PTI