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South Korean multinational Samsung is evaluating a shift of some of its smartphone and electronics manufacturing from Vietnam to India, aiming to mitigate risks tied to potential US tariffs on Vietnamese exports, Moneycontrol has learnt.
Vietnam currently serves as Samsung’s primary production hub, however, escalating trade tensions have prompted the consumer electronics giant to explore India as a strategic alternative to serve global markets, including the US.
“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 told Moneycontrol on condition of anonymity.
A query sent to Samsung didn't elicit any response till the time of the publishing of this story.
Sources also said Samsung could consider utilising its existing facilities in Uttar Pradesh and Chennai, as well as those of its Indian EMS partners, for production intended for export.
Samsung currently manufactures a majority of its smartphones and other electronics in-house through its local factories in Uttar Pradesh and Chennai. However, it has diversified local production by outsourcing certain models of smartphones and consumer products to Indian contract manufacturers such as Dixon Technologies.
Samsung made around 60 million handsets through ODMs in 2024, primarily through Huaqin, Wingtech, and Longcheer. Shanghai-based Huaqin recently entered India through a joint venture with Bhagwati Products (Micromax), which is operating under Vivo’s premises.
Longcheer, on the other hand, has a partnership with Dixon, and is already manufacturing phones under Longcheer’s brands, including for Samsung.
Another top executive privy to the talks said that the Huaqin-Bhagwati joint venture, currently producing entry-level models for Vivo and Oppo, is in discussions with Samsung to secure new business.
Tarun Pathak, research director at Counterpoint Research, told Moneycontrol that the market tracker’s supply chain checks over the past two weeks indicate a significant focus on India.
“Brands are increasingly considering India not only for smartphone assembly but also for manufacturing larger electronic goods. This heightened interest comes as India's manufacturing ecosystem steadily improves, supported by recent investments, better infrastructure, and a favourable geopolitical environment for India backed by strong government policies,” Pathak said.
Samsung has been participating in India’s production-linked incentive (PLI) scheme for the past five years and has consistently availed its benefits. According to sources, the South Korean electronics giant is now eligible for an incentive of over ₹1,000 crore, having achieved its fifth-year target of ₹25,000 crore in incremental smartphone manufacturing under the scheme.
US President Trump had announced steep tariffs on imports, imposing a 46% levy on Vietnam and a 26% on India. However, on April 9, Trump granted a 90-day pause on reciprocal tariffs — excluding China, which faces the highest levy at 145% - while maintaining a 10% baseline tariff.
S Krishnan, Secretary in the Ministry of Electronics and Information Technology (MeitY) had recently said that India's electronics sector is at an advantage compared to other Asian peers such as China and Vietnam, which have been subjected to higher tariffs. India Cellular and Electronics Association (ICEA) also echoed similar views.
India, which has been excluded from harsher measures, is accelerating trade negotiations with the US, aiming to finalize the first phase of a pact by September–October this year. The two nations also aim to double bilateral trade to $500 billion by 2030, up from the current level of $190 billion.
A final trade agreement would boost India’s appeal as a manufacturing base for US tech giants like Alphabet and Apple, especially to export back to American consumers.
Google-parent Alphabet has also initiated discussions with Dixon Technologies and Foxconn to shift Google Pixel smartphone production to India, particularly for US-bound devices, sources mentioned above confirmed to Moneycontrol.
"The talks are on with both contract manufacturing partners who are already making certain models of Pixel smartphones. If everything goes fine, then India could become a global production base of Pixel phones. Although before that, the company needs to focus on solving the local sourcing issue," one source said.
