Samsung Shifts Gears: India Rises as Key US Production Hub

Samsung Electronics is preparing to diversify its smartphone production and export strategy to mitigate the potential impact of U.S. tariffs on Vietnam, with India emerging as a key alternative manufacturing hub.

The South Korean tech giant plans to shift a substantial portion of its U.S.-bound smartphone production from Vietnam to multiple countries, including India. “We are ready to produce for the U.S. in multiple factories, including India,” said Won-Joon Choi, President and COO of Samsung’s Mobile eXperience business. “We’ve diversified our manufacturing footprint for products destined for the U.S. market.”

Currently, Vietnam supplies the majority of Samsung’s smartphones for the U.S., while devices manufactured in India are exported to other global markets. However, in response to shifting geopolitical dynamics, Samsung has begun shipping limited volumes from India to the U.S.

India has the capacity to produce up to 70 million smartphones annually, with current output around 45 million. In FY25, Samsung exported smartphones worth over ₹30,000 crore (approximately USD 3.5 billion) from India. With the U.S. accounting for USD 10 billion of Samsung’s total smartphone exports, a significant portion of that could transition to India, depending on future U.S. trade policy decisions.

News by Rahul Yelligetti.