Samsung mulls shifting production from Vietnam to India amid US tariffs

Vietnam serves as a key manufacturing hub for Samsung, with the company exporting over $52 billion worth of mobile phones and spare parts in financial year 2024

Amid steep US tariffs on Vietnam, South Korean tech giant Samsung is considering shifting some of its smartphone and electronics manufacturing to India, a source told Moneycontrol.

 

“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,” a source familiar with the discussions said.

 

The comment comes 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—to move a portion of global Pixel smartphone production from Vietnam to India.

 

 

Why is this significant? 

Vietnam serves as a key manufacturing hub for Samsung, with the company exporting over $52 billion worth of mobile phones and spare parts in the financial year 2024. This accounted for 9 per cent of the country’s overall trade.

 

For context, last year, Vitenam’s electronics exports touched $142 billion, which is nearly five times what India was able to achieve in FY24 at $29.2 billion.

 

With Samsung and Alphabet exploring a manufacturing shift to India, and Apple already assembling products locally, India can position itself as a key player in the global electronics supply chain. 

 

US tariffs on Vietnam 

The recent shifts are being driven not just by lost cost, but by shifting geopolitical dynamics. Earlier this month, the US administration, led by President Donald Trump, announced a 46 per cent tariff on Vietnamese imports. Meanwhile, it imposed a 26 per cent tariff on India. Although a 90-day pause on reciprocal tariffs was declared on April 9 for trading partners except China. Notably, China, another major electronics manufacturing base, was excluded from the deferment and continues to face a 145 per cent tariff.

 

Tech giants with a manufacturing base in Vietnam, including Samsung, are using the 90-day pause as a window to reassess operations and consider diversifying production.