Trump tariffs: Samsung, other handset makers may shift from China to India, says report

Samsung

Samsung and some other electronics majors are considering to move handset production out of China and expand their operations in India, as US President Donald Trump imposes heavy tariffs on Chinese goods, The Economic Times has reported.

The Trump administration on March 4 doubled the tariff on Chinese imports to 20 percent. The additional tariff will be applicable to several consumer electronics imports, including smartphones, laptops and wearables.

Samsung begun shutting down its factories in China as early as 2020. The South Korean major relies on Chinese original design manufacturers (ODMs) for its low-end handsets for global markets.

The report quoted an executive from a leading electronics contract manufacturer as saying that India is likely to see more orders from Samsung. "We are making some of the lower-end models for the brand, and in the future, some high-end models may also come to us," the report quoted the unnamed person as saying.

Other industry executives said global smartphone brands with significant presence in the US market are looking at countries like India to shift a chunk of their manufacturing to counter the impact of the tariffs.

Moneycontrol couldn't verify the report independently.

China still holds a competitive advantage over others due to the scale and sophistication of its manufacturing infrastructure.

"A significant portion of Samsung's entry-level smartphone models is produced through Chinese ODM partners, with production also taking place at their overseas manufacturing facilities. As Chinese ODMs continue to expand their overseas production bases, particularly in India, the likelihood of increased production through ODM partners operating in India is rising," the report quoted Omdia executive Jusy Hong as saying.

Samsung produced nearly 6 crore handsets through ODMs in 2024, majorly through Huaqin (40 percent), Wingtech (40 percent), and Longcheer (20 percent). All three of them have facilities in India, the report said.