Samsung is considering expanding its smartphone manufacturing for the US market from India, as uncertainty looms over possible US tariffs.
If implemented, the shift would echo Apple’s strategic move to turn India into a major global export base, signalling the country’s growing importance in the global electronics supply chain.
The development comes amid concerns over trade policies being pursued by US President Donald Trump, which may result in higher tariffs on imports from certain countries.
In this backdrop, Samsung is reportedly weighing tariff differentials and exploring the possibility of relocating a portion of its production from Vietnam to India.
“Samsung has production presence in several countries. Uncertainty in the US is currently very high and because of that we have been preparing against a number of different scenarios. We are ready to produce for the US from multiple factories, including India,” Won-Joon Choi, Samsung’s global president and chief operating officer (mobile experience division), told ToI, during the global launch of the Galaxy Fold7 and Flip7 smartphones.
He added, “We are already manufacturing some of the smartphones that are going to the US at our factory in India.”
Samsung currently operates a major smartphone manufacturing facility in Greater Noida, Uttar Pradesh, which primarily serves the Indian domestic market with limited exports. In contrast, its factories in Vietnam cater more to overseas demand, including shipments to the United States.
Shift in sourcing depends on Trump’s tariff decisions
Samsung is closely tracking the Trump administration’s tariff stance, which could prompt a restructuring of global production lines.
“One of the things that we have prepared was to have diversification of our factories for the product we will ship to the US. Depending on the final decision by the Trump administration, we have already established a system in which we can shift from one (location) to another to respond to the final decision more flexibly,” Choi said.
He also stressed that Samsung’s global manufacturing strategy has always included contingency planning for geopolitical and trade-related disruptions.
“Even without taking the tariff situation in consideration, we operate with multiple factories across the globe and we have always tried to optimise our operations as efficiently as possible so that we achieve business stability and provide price stability to our consumers,” he said.
India seeks parity as Vietnam eyes 20% tariff
While Vietnam currently remains a key export hub, reports suggest that shipments from the country to the US may attract a 20% tariff if new US trade rules come into force.
India, too, has been lobbying Washington for lower duties on electronics exports, particularly as companies like Apple and Samsung ramp up their local output.
Choi confirmed that Samsung is fully prepared to execute a shift in production, should the need arise.
“Some of the things that we need to plan — set the right equipment, set the factory line ready, and get our factory to be certified so that we can make the products and ship to the US. We have all those things ready.”
Rare earth disruptions not a concern, says Samsung
On the issue of China’s restrictions on rare earth mineral exports, Choi said Samsung has preemptively diversified its sourcing strategy to reduce dependency.
“Samsung has long been managing its global supply chain, preparing for different cases. Even for the rare earth metals, we have been trying to source from different companies and different countries… so I can tell you that for the near-term, there has been no production disruptions.”
(With inputs from ToI)
If implemented, the shift would echo Apple’s strategic move to turn India into a major global export base, signalling the country’s growing importance in the global electronics supply chain.
The development comes amid concerns over trade policies being pursued by US President Donald Trump, which may result in higher tariffs on imports from certain countries.
In this backdrop, Samsung is reportedly weighing tariff differentials and exploring the possibility of relocating a portion of its production from Vietnam to India.
“Samsung has production presence in several countries. Uncertainty in the US is currently very high and because of that we have been preparing against a number of different scenarios. We are ready to produce for the US from multiple factories, including India,” Won-Joon Choi, Samsung’s global president and chief operating officer (mobile experience division), told ToI, during the global launch of the Galaxy Fold7 and Flip7 smartphones.
He added, “We are already manufacturing some of the smartphones that are going to the US at our factory in India.”
Samsung currently operates a major smartphone manufacturing facility in Greater Noida, Uttar Pradesh, which primarily serves the Indian domestic market with limited exports. In contrast, its factories in Vietnam cater more to overseas demand, including shipments to the United States.
Shift in sourcing depends on Trump’s tariff decisions
Samsung is closely tracking the Trump administration’s tariff stance, which could prompt a restructuring of global production lines.
“One of the things that we have prepared was to have diversification of our factories for the product we will ship to the US. Depending on the final decision by the Trump administration, we have already established a system in which we can shift from one (location) to another to respond to the final decision more flexibly,” Choi said.
He also stressed that Samsung’s global manufacturing strategy has always included contingency planning for geopolitical and trade-related disruptions.
“Even without taking the tariff situation in consideration, we operate with multiple factories across the globe and we have always tried to optimise our operations as efficiently as possible so that we achieve business stability and provide price stability to our consumers,” he said.
India seeks parity as Vietnam eyes 20% tariff
While Vietnam currently remains a key export hub, reports suggest that shipments from the country to the US may attract a 20% tariff if new US trade rules come into force.
India, too, has been lobbying Washington for lower duties on electronics exports, particularly as companies like Apple and Samsung ramp up their local output.
Choi confirmed that Samsung is fully prepared to execute a shift in production, should the need arise.
“Some of the things that we need to plan — set the right equipment, set the factory line ready, and get our factory to be certified so that we can make the products and ship to the US. We have all those things ready.”
Rare earth disruptions not a concern, says Samsung
On the issue of China’s restrictions on rare earth mineral exports, Choi said Samsung has preemptively diversified its sourcing strategy to reduce dependency.
“Samsung has long been managing its global supply chain, preparing for different cases. Even for the rare earth metals, we have been trying to source from different companies and different countries… so I can tell you that for the near-term, there has been no production disruptions.”
(With inputs from ToI)
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