Samsung Plans to Boost Manufacturing in India Amid U.S. Tariff Concerns

Samsung Electronics, the South Korean tech giant, is looking to ramp up its smartphone and electronics production in India as a way to navigate growing uncertainties around U.S. tariffs. Won:Joon Choi, Samsung’s COO of the Mobile eXperience division, shared that the company is prepared to supply the U.S. market from various manufacturing hubs, including India, to keep prices stable and business running smoothly.

The U.S. is a major market for Samsung, making up 39% of its sales in 2024. However, new tariffs under the Trump administration have hit hard, with a 46% tax on imports from Vietnam, where Samsung produces 60% of its 220 million smartphones each year. India, facing a lower 26% tariff and a temporary 90-day pause on additional trade restrictions, is becoming a more appealing option. Samsung’s factories in Uttar Pradesh and Chennai already churn out 45 million smartphones annually, and the company plans to increase this output, potentially exporting $10 billion worth of devices to the U.S.

“We’ve been preparing for different possibilities because of the uncertainty in the U.S.,” Choi said. To support this shift, Samsung is in talks with Indian manufacturers like Dixon Technologies and Bhagwati (Micromax) to expand local production. This move also ties into India’s Production-Linked Incentive program, which has already rewarded Samsung with over ₹1,000 crore for meeting manufacturing goals.

Other tech giants, like Apple and Alphabet, are also eyeing India to dodge tariff issues, signaling a broader trend. Still, India’s supply chain can only handle about 20% of Samsung’s production needs right now, so scaling up won’t be easy. Social media buzz on X shows excitement about new jobs and India’s growing role in global tech manufacturing.

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By leaning on India, Samsung is showing its ability to adapt to changing trade policies and geopolitical challenges. While the company’s next steps depend on U.S. trade decisions, its focus on diversifying production keeps it ready for whatever comes next.