TL; DR
- Samsung is considering Bhagwati Products and Dixon Technologies as its contract manufacturers in India.
- Even though Vietnam is the company’s global production hub, the uncertainty related to Trump’s import tariffs has led the company to explore other options.
- For those catching up, Trump’s government announced a 46% tariff on imports from Vietnam. However, Indian imports only attract 26% tariffs.
In an attempt to safeguard its operations from the possibility of increased tariffs from the United States, the Korean tech conglomerate Samsung is considering shifting a chunk of its smartphone production to India.
Samsung In Discussion With Dixon Technologies To Shift Its Smartphone Production
A report by Money Control highlights how Samsung is considering Bhagwati Products and Dixon Technologies as its contract manufacturers in India. The publication’s sources also indicate that other companies with a manufacturing base in Vietnam are considering shifting some of their production to India.
Even though Vietnam is the company’s global production hub, the uncertainty related to Trump’s import tariffs has led the company to explore other options. Vietnam accounts for over $52 billion worth of exports of Samsung smartphones and repair parts, which makes up a little less than 10% of the country’s total exports.
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Several Companies Are Considering India As Their Manufacturing Hub
For those catching up, Trump’s government announced a 46% tariff on imports from Vietnam. However, Indian imports only attract 26% tariffs. Even though there is a 90-day pause on the tariffs, the company is taking the necessary measures to mitigate the potential impact of the tariffs.
Amid all this, India has the opportunity to emerge as the new global production hub for some of the world’s biggest tech companies. While Samsung plans to shift some of its production to India, the Alphabet-owned giant Google is also exploring a manufacturing shift to the subcontinent.
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Apple Is Already Manufacturing About 20 million iPhones in India
Apple, on the other hand, has already been following the same path. The Cupertino-based giant has been manufacturing its iPhones in the country for some time now, with the Pro models also being produced there. According to Bloomberg’s latest report, Apple sold $22 billion worth of iPhones in the country during the last financial year.
The company now manufactures about 20% of its iPhones in India, a significant portion of which comes from the Foxconn facility in Tamil Nadu. However, Apple is not stopping here. By the next year, the company plans to produce up to 40 million iPhones in the country.
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