Samsung likely to shift a part of its manufacturing from Vietnam to India: Report

Samsung might soon shift a major part of its manufacturing facility to India. The South Korean tech giant is said to be on the final stages of its planning process to produce devices worth $40 billion (roughly Rs 3 lakh crore) in India.

The government’s Production Linked Incentive (PLI) scheme could be a reason for Samsung to diversify its production lines for making smartphones in India, said a report by The Economic Times.

The move is likely to have an impact in its existing facilities, including Vietnam, which is the second-largest hub for smartphone manufacturing in the world after China. 

The report states that Samsung has submitted estimates of making smartphones worth over $40 billion to the government in the next five years. A major chunk of the investment, which is estimated to be around $25 billion, will be for smartphones priced over $200 (roughly Rs 15,000).

Samsung will also be exporting these smartphones made in India, the report added.

India is home to Samsung’s largest phone manufacturing plant in the world. The Noida facility also manufactures smartphones that Samsung exports to other countries. 

The developments mark Samsung’s move to engage in localised manufacturing in India to avail the Centre’s PLI scheme; besides expanding its base beyond China and Vietnam.

There is no official confirmation yet from Samsung. 

Recently, there were reports of Apple shifting part of its production from China to India. The company’s latest smartphones — iPhone 11 and iPhone SE 2020 — are reportedly being made in India.

The Cupertino, California-based US tech giant may further expand production to export the devices from India. Apple already assembles the iPhone XR, iPhone 8 series, iPhone 7 series in India via its various suppliers like Foxconn, Wistron, etc.