Samsung’s Strategic Shift: India Emerges as New Manufacturing Hub Over Vietnam

 

Samsung is actively planning to move a significant part of its smartphone and electronics manufacturing out of Vietnam to India due to high US tariffs on Vietnamese goods—46% compared with 26% for India. The South Korean technology giant has started talks with Indian EMS partners like Dixon Technologies and Micromax to accelerate production in its Uttar Pradesh and Chennai facilities for local consumption and export, led by the US market. Vietnam now accounts for 60% of Samsung's worldwide smartphone production, but the new tariff environment and 90-day stoppage are making Samsung and other tech giants move away from sole reliance on Vietnam towards diversification of supply chains. The shifting electronics ecosystem of India, with the PLI scheme driving growth, positions India as a serious alternative manufacturing center as global leaders seek to de-risk dependence on Vietnam and China.

 

Sources: Business Standard, Times of India, Hindustan Times