South Korean tech leader Samsung is in talks to move some of its smartphone and electronics production from Vietnam to India, according to sources. Discussions have begun with Indian electronic manufacturing services (EMS) partners including Dixon Technologies, Foxconn, Bhagwati Products, Wingtech and Longcheer, which handles certain models for Samsung. Vietnam currently accounts for over $52 billion in Samsung’s phone and spare-parts exports, which is about 9 percent of the country’s trade and supplies around 60% of Samsung’s 220 million global mobile sales. Several multinational firms with operations in Vietnam are exploring similar shifts.
Alphabet Inc., the owner of Google has approached Dixon and Foxconn to shift part of its Pixel smartphone output from Vietnam to India, particularly for United States-bound models. Apple, which is already assembling several products in India is further diversifying the local manufacturing base. India’s electronics exports stood at $29.2 billion in FY24 compared with Vietnam’s $142 billion. Samsung has already reached the target of increasing its smartphone production by ₹25000 crore under India’s Production-Linked Incentive (PLI) scheme. As a result, the company will receive more than ₹1000 crore in incentives from the Indian government. Market experts including Tarun Pathak of Counterpoint Research say that with these incentives and improving infrastructure, many global brands are now looking at India not just for phones but also for larger electronics like TVs and appliances.
These discussions coincide with recent changes in US trade policy in which Vietnam faces a 46% tax, while India’s rate is 26% and a 90-day pause on reciprocal tariffs has been granted to partners except China. Supply-chain experts report that improving infrastructure, fresh investments and supportive government policies are prompting more electronic manufacturers to consider India as a strategic production base, a move boomed by India’s Ministry of Electronics and Information Technology and the India Cellular and Electronics Association.
