In a world reshaped by trade winds and shifting global priorities, South Korean tech behemoth Samsung appears to be quietly charting a new course, one that sails closer to Indian shores.
As whispers of steep tariffs on Vietnamese exports to the US grow louder, Samsung is reportedly exploring the possibility of transitioning part of its smartphone and consumer electronics manufacturing from Vietnam to India. Sources say early talks have already begun with Indian electronics manufacturing service (EMS) firms like Bhagwati (Micromax) and Dixon, both of whom maintain partnerships with Chinese original design manufacturers (ODMs) such as Huaqin and Longcheer.
“Samsung and partners are discussing production adjustments in favour of India,” a person familiar with the developments shared, underlining a potential rebalancing of its global supply chain.
Vietnam currently serves as Samsung’s largest manufacturing base, churning out nearly 60% of its global smartphone supply, especially for the US, its second-biggest market. But recent US tariff threats, especially a 46% levy on Vietnam have prompted a rethink.
India, meanwhile, finds itself in a sweet spot. Thanks to its more moderate 26% tariff and a 90-day waiver granted in early April, India is emerging as a favourable alternative. With its improving industrial landscape, upgraded infrastructure, and government incentives such as the Production-Linked Incentive (PLI) scheme, the country is wooing global giants to ‘Make in India’ for the world.
Samsung, which already runs major manufacturing operations in Uttar Pradesh and Chennai, has also been outsourcing some production to domestic players like Dixon Technologies. In 2024 alone, the brand reportedly rolled out about 60 million handsets through ODMs like Huaqin, Wingtech, and Longcheer.
Notably, Huaqin recently partnered with Bhagwati Products to produce entry-level smartphones for brands like Vivo and Oppo—now they’re in talks with Samsung too. Similarly, Longcheer’s collaboration with Dixon is already yielding phones under Samsung’s portfolio.
Meanwhile, India’s electronics push is gaining credibility. “Brands are increasingly considering India not only for smartphone assembly but also for manufacturing larger electronic goods,” said Tarun Pathak, a leading tech analyst.
India’s policy edge is also being noticed at the highest levels. S Krishnan, a senior government official, recently highlighted India’s competitive edge over Asian peers like China and Vietnam, both of which are facing higher tariffs.
With the US and India working toward a new trade pact expected by late 2025, and a vision to double their trade volume to $500 billion by 2030, the stars appear to be aligning for India’s tech manufacturing dream.
Even Alphabet, the parent of Google, is reportedly in discussions to shift production of Pixel smartphones to India via Dixon and Foxconn. One insider noted, “If everything goes fine, then India could become a global production base of Pixel phones.”
As global dynamics continue to evolve, India’s rising prominence as a manufacturing hub may soon reshape the global supply chain story, from Vietnam’s factories to India’s assembly lines.
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