Samsung Electronics is considering a significant shift in its global supply chain that would make India a principal manufacturing base for smartphones bound for the United States, mirroring the strategy Apple has already adopted. According to executives quoted by The Economic Times, the South Korean giant is reviewing tariff scenarios under the Trump administration, which has threatened import duties of up to 20 percent on Vietnamese‑made phones. By moving more production from Vietnam to its Noida plant—already one of Samsung’s largest worldwide—the company could shield US‑bound shipments from new levies while tapping India’s production‑linked incentive (PLI) subsidies and expanding domestic component sourcing.
Industry analysts say Samsung’s review underscores India’s growing weight in the electronics supply chain. The firm exported roughly $4 billion worth of handsets from India in FY 2024‑25; that figure could double within three years if the tariff threat materialises and if India can match Vietnam’s established ecosystem for displays, camera modules and chip packaging. Apple’s example is instructive: iPhone exports from India soared 60 percent last fiscal to an estimated $22 billion as Foxconn, Tata Electronics and Pegatron ramped up capacity. Samsung would join that reshoring wave just as New Delhi finalises a $10 billion chip‑manufacturing subsidy and fast‑tracks approvals for new logistics parks.
Yet the pivot is not guaranteed. Executives caution that the company will wait for clarity on US trade policy and on India’s next round of PLI incentives before shifting high‑volume Galaxy production. They also point to India’s still‑nascent semiconductor packaging ecosystem and higher inland freight costs compared with Vietnam. Even so, CBRE data show 70 percent of Asia‑Pacific electronics firms now plan India manufacturing expansions, and Samsung has told suppliers to model alternative production splits between Vietnam and India in case tariffs bite. If implemented, the move would reinforce India’s emergence as a global smartphone export hub and help diversify Samsung’s risk across multiple production geographies.